According to a Bernama report, the Domestic Trade, Cooperatives and Consumerism ministry (KPDNKK) expects to implement the diesel subsidy rationalisation plan in early January.
The ministry is awaiting the final decision from the Economic Planning Unit and the Finance ministry, regarding a number of policies, before implementation takes place, said KPDNKK secretary-general Datuk Seri Alias Ahmad.
“The implementation of the subsidy rationalisation for just diesel is expected in January, while that for petrol will take a little longer. This is because the system for diesel is the Diesel Subsidy Control System which is ready, and we are merely ‘upgrading’.
“For petrol, we are starting from zero and it needs time,” he said, adding that the rationalisation of petrol subsidies could happen two to three months after that for diesel.
According to Alias, around 780,000 vehicles will be involved in the subsidy rationalisation for diesel, and about 18 million for petrol. He also said the diesel subsidy rationalisation will result in savings of between five and six million litres annually.
Second finance minister Datuk Seri Ahmad Husni Hanadzlah revealed in July that the government is looking at a certain salary level to be eligible for fuel subsidies. He cited, as an example, those with monthly earnings of RM4,000 and below alongside those earning more, and up to a certain level.
Meanwhile, an official decision has yet to be reached on whether RON 95 petrol and diesel will be exempted from the Goods and Services Tax (GST). The tax is scheduled to come into effect on April 1, 2015.
But we’ll know the fate of our fuel prices soon enough, as the final list of zero-rated or tax-exempted items will be gazetted on October 10, when Budget 2015 will be tabled in Parliament.
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Go to hell
Whether u like it or not, hell or hevan if u r using diesel vehicle, then u hv to pay based on the revised price. No need to get emotional with this. Next is GST and god knows what is next. Perhaps we need to consider cycling to work or bus/lrt/komuter
This is a beautiful gift by our Government to all the bumiputera of Malaysia. The majority in this country is Bumiputera and they will be the ones suffering the most.
Padan muka to all of those who voted their BN in. To all the Bumiputera in Malaysia, all I can say to you is that, your own people are the ones prosecuting and making you suffer. 95% Bumiputera suffer whilst the remaining 5% of UMNO members laugh to the bank happy
Fuel smuggler feels the heat already.
Who? You?
A:
I’m earning MYR 500 CASH DAILY as a HAWKER (MYR 15000 monthly), but sales transaction not recorded, N/A to income tax submission, bunglo/semiD & MERC/BMW purchased under my sons & daughters name. i’m included all my families still enjoying subsidy. haha…
B:
I’m earning MYR 4001 monthly, equally broke with monthly house payment 1400 (300k loan), car payment 500 (40k loan), electric/water/hp 200, tol/pertrol 500, meal 500, shopping 200… BUT shxt policy, those are BASIC spent BUT i’m still NOT entitled subsidy even with my ZERO NET income.
C:
I’m dato/DS/TS sons/daughter, i’m not even need a job but reach to unlimited CASH anytime. No job No tax but driving BMW and stay in bungalow. BUT i’m still enjoying subsidy, haha…
D:
I’m no need a job, my parent left over millions asset to me, i’m living in bungalow and driving BMW. No income no tax. BUT i’m still enjoying subsidy, haha…
E:
unlimited scenario to go…
Seriously, how about a tax cut for people earning above 4K that has reduced subsidy.
How about these people don’t pay additional taxes as people who pays below 4K.
Taxes are already applied judiciously across all pay grades. This is just BN’s ploy of squeezing more from the helpless middle class while the AP cronies continue to enjoy tax free returns.
Expect Malaysian to be stuck in the middle income trap for eternity.
Also I would like to know where’s the rationality to this “subsidy rationalisation”
Problem Statement: Our neighbour are stealing our subsidised gas.
Rationalisation committee A: I know! Why don’t we make the people that subsidised the gas in the 1st place pay for the stolen gas!
Rest of the Jaguh: Great IDEA!!
Hold on.
Subsidy based on income? Let’s say person X is a company boss. He drives a Porsche Panamera Diesel or a Cayenne S Diesel. One of the most expensive diesels you can buy. You know what he would do? He’d get a driver to fill up the tank! He’ll just pay the driver the cost of the fuel under subsidy plus a bit extra for the driver’s charge and be done with it. Heck, he could ask the guy at the petrol station to swipe his card instead. He’d rather pay 50 dollars to the petrol attendant, which will be beneficial to the petrol attendant, than contributing to the G where money goes in but mysteriously disappears…. Or if not, he would get his kids (who are legally allowed to drive, and below the working age) to fill up his car with their MyKad, as the kids would not be earning enough yet in most cases to breach the limit for subsidised fuel.
First they wallop us with fab taxes for our cars. Then they sucker punch us with our crap fuel, making our cars run less efficiently hence needing more fuel. Then to seal the deal, they want to do this… It’s not like the middle class and high income people are not paying taxes also, they contribute so much. The high income may not feel it, but a middle income person, with say something like a Peugeot 508 HDi or an Accord or even a regular 3 series will feel the pinch, especially considering many middle income people have families, kids, homes to pay for, savings for kids education, medical insurance etc.
Get rid of the car tax and fuel subsidy, just like the rest of the world. Look at the UK, Germany or US and learn…
The way you thinking is pulling down malaysians’ average IQ.
It should base on Owner’s income or company registration.
If you register your car under your employee or children, Lembaga hasil will belanja coffee.
If you think they are actually going to be check your car registration details at the petrol station, then you must be new in Malaysia.
Have you ever been Johor Bahru?
Are you aware that Singapore registered vehicle can’t fill up RON95 within 25 km?
Implement such system also help in tracking stolen car. One stone for two birds.
Totally agree. I think our government needs to be rationalised!
>but a middle income person, with say something like a Peugeot 508 HDi or an Accord or even a regular 3 series
I thought middle income people couldn’t even afford those. (Correct me if I’m wrong on this, I will be happy if I’m wrong)
don’t think too much with issue regarding “boss asking driver to fill-up” thing. waste of time.
however, i would agree with your last statement to remove car tax and fuel subsidy. it has to be done gradually to prevent a shock in automotive market. i think that is what gov trying to do, remove subsidy gradually. but i just don’t see ‘remove car tax’ gradually yet.
we must ask every car manufacturers or distributors to give us price breakdown so we would know how much is base car price, accessories, taxes, and other details for each car.
U think they will learn from those countries ? They learn to get their own benefits/pocket only… Other people die … is other people issue not them… they just keep enjoying what they can get from time to time !
Remove subsidies, abolish excise tax of cars…
Voila simple…
Fuel might be pricey but we all would drive more responsibly and save fuel…and cheaper cars means happier paultan commenters
Don’t you get it? The government want to “save” subsidy. They want “more” money from the rakyat. Subsidy will only ever be removed. Abolish? Their dictionary do not have that word. Blardy stupid BN government. Still vote for them la u stupid pro-BN rakyat.
Bang on.
The government is broke. They want more money from the rakyat using whatever means necessary …and justifying it on their own terms.
if they really want to save money, they can start by getting rid of the free APs and selling AP directly to the rakyat…like what singapore does with the COE.
I’m fine with the idea to drop subsidies and drop stupid high taxes (which has absolutely no value add) and let consumers choose if they should get a new more fuel efficient car.
Every thing lacks transparency. So how much tax break does one get on an EEV car?
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Hi BN trooper, UMNO just called, asking you to collect your duit upah.
This is probably the best response I have seen in Paultan for the longest time, instead of the usual whining.
These are the hard truths of the current society. Man up or ship out.
If diesel subsidy remove, most of the transportation fee will increase , then all things will be much more expensive than now, so not just the daily usage of fuel , our income will be suck out by our G
oh don’t forget. Any increases in prices will also come with the double whammy of the GST.
what the hack are you talking about, dude?
imagine u have many children and they going to different school ( 2 to be rational la, both secondary and primary school), they will have different activities, and some might sent their children to several tuitions. so financial sifu, do u think the fuel will be 200 extra???? and those many children one, mostly middle income family.
asking them to take public transport??? if malaysian staying outside kl, do u see any train running in town like kl? do the bus service is as frequent in kl? tak payah jauh pergi swak, just go to melaka u will know what am i talking about bus service efficiency. for those in kl, u think using public transport will be cheap if u have many children, and u keep going to various places for working and children activities purposes?
come on, use some commonsense before you talk. typical keyboard warrior. wondering how old are you and did you even step out of your house?
Then get to the root of the problem. Why do you have so many kids? Obviously you can’t afford to have kids. Before having kids you should have planed these things.
No need to spoil your brats further by dropping them off yourself. Get them bicycles.
Send kids to tuition? Why school isn’t enough? You are bringing this problems upon yourselves. New generation of failures aka parents. You are failing to raise your kids properly. Too much pampering, raises brats. Brat’s can’t survive in this world, your kids will be druggies and whores.
not all people have the same good fortune like yours.doesn’t matter if few of them hv a better edu background than yours or not, the luck is just not on their side for the moment.YOU SHOULD BE THANKFUL TO GOD if u have one.thus when this kinda BS from the G kept on coming, various reactions will raise due to the current state of high living cost. there will be a low/middle/high income groups in any country to balance every sectors. do not expect all people to accept everything whereas they were trying to improve their live everyday, but unfortunately the G keep pulling them to the ground.do not simply ask them to change their way of living.cycling thru KL road???y dont u do it first!then u tell me…Moving to KL avoid being a Moron??enuff said for ppl like u…not all ppl can live at the staff quarters if u r really a police.have u experience the same as they are now?they hv took various factors in their decisions…sometime its bored trying to make ppl like u to undestand…so sad…
I don’t have to cycle. I can afford a car and fuel.
If it’s too difficult, why carry on? Why not just end everything and be free? A simple solution to an ongoing problem.
Think about it.
If ever there was a hypocrite, you definitely fit the bill. Not all circumstances in life can come together and make it so simple.
1. No one is expecting handouts because we all can afford the fuel at the moment, so since the government knows this, its trying to steal more money from the Rakyat like a THIEF!
2. Public transport is not efficient at all in Malaysia in a whole, maybe in KL it is not so bad but still there is a lot of improvement that can be done to be at a standard like Singapore. If the public transport can be upgraded to be more reliable, efficient and reaching more locations, then it would be a feasible means of transportation.
3. Car prices aren’t high? You must be living under a coconut shell! Even Dr Mahathir knows the car price in Malaysia is ridiculously high! Heck even a 12 year kid knows this!
4.Live within our means, is what rational, God fearing people have been doing, but the Government and its cronies have not. And that is why we the middle in-come people have to pay for their stupidity and greed!
5. Find another way? What way? Its easy to just type and rant on the forum, but why don’t you help by giving some ideas or solution?
6. Cycling to work is a good idea but if your work place provides shower and changing areas and is not that far. Also have to consider the traffic as cycling on the road in Malaysia is nearly the same as suicide as the motorist and car drivers don’t have proper road ethics.
7. Living closer to work? If you work in KLCC, and if you are a middle income group, can you afford a house/apartment near KLCC? You must be really dumb to make this statement!
8. The government has been generous is some areas but foolish in most. The government should be renewed with young blood and more long term thinking people. Not people who just think about themselves and their family and forget the Rakyat!
1. The Government is not trying to steal. It’s trying to wean you off its teats.
2. Public transport is not efficient? i see taxis all over.
3. If car prices are high, the majority of Malaysians will not be able to afford them. Vehicle sales statistics are clearly proving otherwise.
4. You are paying taxes just like in any other country. Why are you blaming the government? Don’t blame the government for your failures.
5. Find a way. How hard is that. Again you’re expecting someone to HANDOUT ideas and solutions to you. Stop expecting handouts.
6. Blaming others again?
7. Why are you working in KLCC if you live far away? Look for a job nearby. You can’t have your cake and eat it too.
8. Young blood? The brats and pansies that are being raised these days?
Asking gov to remove excise duty is NOT spoon feeding!
If gov wants to remove fuel subsidy , they should remove excise duty as well.
Why stop at excise duty?
They should stop collecting taxes altogether.
Good. Keep the government small and stop feeding those non essential government staffs that actually leeching the tax payer money.
Some of your comments are valid but do you have to be so harsh and rude about it ? Please reason in a more civilized manner or is trolling your way of finding pleasure in other people’s misery ? Be nice. Be articulate. People will listen. Are you listening ?
Good. Now middle class citizens have to suffer more.
Utterly stupid.
Actually middle class don’t suffer. If you’re suffering, probably it cos you’re lower class.
Middle class, by definition do not suffer, because they’re middle class.
Think about it.
Enough of govt subsidies.. Remove it altogether.
Malaysians must live it and be competitive.
Use the subsidy money to built better schools, old folks homes and hospitals
I agree with you of what you have written for the first and second line.
But, are you sure that the current government is going to build better schools, old folks homes, hospitals?
Better schooling
Take SPM for example, it is worthless now competitively, only to be obtained as a basic requirement for tertiary eduation. School facilities are long overdue for repairs and maintenance, and now our young generation can “pass” the subject with as low as 10 marks. Fail.
Childcare or elderly care centres:
Seriously, i bet almost 90% of the childcare / old folks homes are struggling to survive on donations and volunteers. For decades.
Hospitals?
Don’t get me started on this. Not going into politics, but our hospitals always short on manpower, be it doctors or nurses. Training and education for medical field is very inadequate to the extent that, our people have to venture overseas for education before coming back to serve our country for pathetic salary and benefits.
What i am trying to say is, all those money gained by removing the subsidies, will not go to those areas you mentioned, but to their own pockets (cronies). Not a chance unless over their dead body.
Look at the above comments, removing subsidy is not a bad thing, but we all are concerned where all those money will be going to. And judging from decades of experience, i guess we know the money will “disappear” eventually.
Another time wasting policies gov trying to impose.. how about those hawkers who earn RM10K but declare earning of RM2K.
Like that I rather work lazily and wait for subsidy… memang gov yg tak pergi sekolah… balik kampung tanam jagung.
Yeah…cancel your subsidies….your crony got more excuse…end the story here… no more subsidies story!!
Higher fuel price >higher transportation fee> sugar flour all naik harga.. roti canai kosong rm1 become rm1.50.. great job government. Cause of your move my breakfast oso ruined! @.@
Stupid idea to cap subsidy based on income… Like this everyone will choose to be low income earner to enjoy benefits..what for work so hard?
Rationalisation? This is ‘their’ way of telling us that the prices of things WILL increase no matter what. That term was only figured out to mask their true intentions. Well done my government. Because of you, soon, the middle income group will be reduced to low income group and then some bloody minister will come up with statements like ‘our income percapita has increased’ like wow! We should all be celebrating! Hurray! Seriously I have always questioned the credibility of those so-called planners sitting in their plush chairs in nice offices with nice views in Putrajaya. Do you guys seriously think Malaysia will prosper if there are too many of you to feed? Ministers. Deputy ministers. Assistant deputies. So many menteris and yet nothing much gets done. The only think you all are pretty damn good at is doing your monkey businesses.
Remove subsidies, remove AP, remove excise tax, remove GST, remove BN and remove Uxno.
Everyone happy. No need all those costly IT implementation that make more opportunities to makan suap
Where’s the knowledge and education? Why are they making such statements? Is our education level really that low, living in the 3rd world country mindset?
It won’t be too much I reckon. Anything drastic will upset the base inflationary model of the whole country.
Subsidy removal and other changes are fine. But why does it seem that they are doing it all in one fell swoop? Feels like being hit by a relentless tsunami. Can tahan ah? Barely does one ‘adjustment’ is implemented and we find a way to adjust, another challenge is thrown our way. Does not seem like an orderly and gradual rationalization regime to me. We can only take so much so fast. There is going to be hell to pay come next elections. That’s just my prediction.
is this how you encourage economy growth? buy making stuff more expensive and affordable?
GST, subsidy rationalisation etc.
Aduh.. rakyat sudah cukup susah, lagi mau tambah susah ke?
Where does all the money go to? I am not against the removal of subsidies, as long as the government make good of its savings to the citizens. The problem is time and again, the government still lacks a decent level of transparency and accountability. Where will all this removal of subsidies go to? If they have a clear plan that these money are going towards building the nation(instead of spending into useless, overpriced projects that benefit cronies) then i am ok. In fact I think if the government has been more transparent, prudent and act with integrity with the way they spend the nations’ money through the last decades, we would have enough to finance the cheaper fuel price.
Until then.. dont make life hard for the rakyat. Betulkan diri dulu. Do away with your own luxurious lifestyle and foreign accounts. Nak susah, sama2 susah.
I think government can and should look into reward based system if it wants to propel Malaysia into a high income nation. Of course fuel subsidy should be applicable for citizens and citizens only.
Chances are the lower earners rides on motorbikes and smaller displacement cars. They won’t require as much fuel for personal use.
Moving higher the income tier, we get tax payers. These are the people that government should pay attention to. The logical step would be to reward these tax payers with higher subsidy quota. The higher the tax paid, the more the income to the government’s coffer, and it should translate into a larger quota. This is how you encourage people to move up their social hierarchy.
The low earners don’t need as much petrol. Chances are they will sell their quotas to schemers which defeat the whole purpose of having a quota system.
While the government is at it, why not throw in another bonus, say any driver who remains clean of summon for a certain period become entitled to an extra 10% quota ?
Another non productive idea from BN brown monkeys goon. Yawn… Its ok, judging by the competency of our G. Lets sit bak and relax to enjoy their monkey show.
this will only cause an increase in every other things too…diesel is used mainly by commercial trucks/lorries.
In the end, an increase in transportation cost will lead to increase in the product/service cost/price itself.
after this low income people ride motorcycle or drive a car…rich people drive a car…Middle class people ride bicycle…already so hard to survive in kl for the middle class…some more wanna wanna cut subsidy for those earning 4k…the government already said themselves that those earning 3500-4000 a month is consider as poor.
come on la BN…you can do better than this.
SUbsidy is evil. Pure and simple. Let free market prevail.
Subsidy in itself in not evil. It’s how and when and for how long it is applied. Yes it’s time for Malaysians to be weaned of it but it would be better to do it more gradually. Looks like helter-skelter for me. Next it’s how the government is managing the savings. It should go to the rakyat in forms of better transport systems, better quality public services. People are angry about this but most of them are angry at the wrong aspect of it. We should demand more transparency, accountability and efficiency from the government’s financial administration. It’s gonna take a long time for this to happen meaningfully though coz end of the day, we – the majority of us do not have the political wisdom and will to make the right long-term decisions and so the politicians will continue to take us for a ride for the forseeable future.
What goes up will not come down. Only in Malaysia.
Our gov is soooooo ‘clever’. nonsense. They have no things to do, eventually got this crazy idea. Hahaa.
ini lah yang akan terjadi bila “monyet” sedang memerintah..sudah tidak boleh berfikir secara rasional seperti manusia normal. Middle income will be effected by this policy. Better we be a poor man and seeking sympathy from Be End government and vote for election.
Shouldn’t all tax payers be treated equally? I think middle class income earner will suffer the most.
I suggest government should remove fuel subsidy altogether.
Or either provide subsidy to buy a vehicle (one time only in a certain number of years) for lower income earner.
At least we wouldn’t find mat rempits taking advantage of fuel prices and terrorising the roads.
Many people wrongly assume GST is an ADDITIONAL tax because some politicians deliberately giving misleading info. Well, it’s not. It’s more of a tax to replace other existing taxes.
For example,
1. 6% GST replaces the current car 10% Sales Tax. So car may become cheaper.
2. 6% GST replaces some Personal Income Tax. For example, those having a chargeable income of RM50K will be paying a lowly Personal Income Tax of 2% instead of present 10%. So they take away your money via GST but give some back via reduced income tax.
A glimmer of hope from you. Let’s pray this is true. The government can make promises but ultimately actions and consequences are more important.
Subsidy removal is fine but why don’t they do it a little bit more gradually ? This month they removed 20 sen. Why can’t they wait say, another 8 months or a year for this ‘rationalisation’ ? And then, there’s the matter of reining in government leaking billions in mismanagement of the money they collect. Seriously they have to announce and show what they have done and are doing to address that problem. If not how are the subsidy removal going to benefit the rakyat ? Plus, they better have plans and mechanisms to reduce the sudden impact of diesel subsidy removal especially on the ordinary working-man citizen. The next elections, we may not forget what happened in 2014 and 2015.
As one of diesel 4wd driver, i bought my truck for better savings on fuel consumption and also personal use. Not commercial. 4wd trucks are now getting more popular in our country for personal use or family use. Since the weather in our region getting unstable nowadays with flood everywhere, 4wd cars is the best choice. My nett pay is below than 7k, with my wife is a full housewife. Paying housing and vehicles loan already take up 3k of my salary. Insurance for the whole family already take up 1k per month. Fuel, travelling, tol charge, already take up 2k per month. Minus household amenities and minor saving, it left me only 600 per per month for personal use.
With the introduction of fuel subsidy, my cost of living will double up and nothing left for me and my family!! Monthly tax deduction already take me 1400 per month!! Plus this subsidy cut, i cannot imagine what will happen next year….
As one of diesel 4wd driver, i bought my truck for better savings on fuel consumption and also personal use. Not commercial. 4wd trucks are now getting more popular in our country for personal use or family use. Since the weather in our region getting unstable nowadays with flood everywhere, 4wd cars is the best choice. My nett pay is below than 7k, with my wife is a full housewife. Paying housing and vehicles loan already take up 3k of my salary. Insurance for the whole family already take up 1k per month. Fuel, travelling, tol charge, already take up 2k per month. Minus household amenities and minor saving, it left me only 600 per per month for personal use.
With the introduction of fuel subsidy, my cost of living will double up and nothing left for me and my family!! Monthly tax deduction already take me 1400 per month!! Plus this subsidy cut, i cannot imagine what will happen next year….