A ‘State of Households’ survey conducted by Khazanah Research Institute opines that fuel subsidies should be gradually replaced with targeted cash transfers to help low-income earners, Bernama reports.
Targeted cash transfers (like BR1M) are better than untargeted subsidies, which could benefit smugglers, businesses and the rich, said Tan Sri Nor Mohamed Yakcop, the chairman of the think tank.
“Subsidies need to be targeted to Malaysians who really deserve it, and a mechanism such as the 1Malaysia People’s Aid (BR1M) does help,” Bernama quoted him as saying.
Each household receives average subsidies of RM625 per year for electricity and RM885 per year for fuel, but high-income households get about 80% of the subsidies, the survey found. It added that most subsidies go to businesses rather than households.
“Of what goes to households, the high-income group benefits the most – a household that only has a motorcycle and ceiling fans enjoys far less subsidy than a multiple-car and air-conditioned household in Damansara Heights,” the survey said.
Last month, Universiti Malaysia Sarawak business and economics faculty lecturer Prof Dr Shazali Abu Mansor opined that the government should consider increasing the road tax for luxury cars instead of making high-income groups pay market prices for RON 95 petrol.
He said that all consumers should be allowed to purchase subsidised petrol, and be free to choose between RON 95 and RON 97, irrespective of the car they drive.
Also last month, Raub MP Datuk Ariff Sabri Abdul Aziz proposed in his personal blog that a fuel tax be imposed on vehicles with bigger-displacement engines.
He suggested a multi-band tax structure comprising engine capacities of 1,601-2,000 cc, 2,001-2,500 cc, 2,501-3,000 cc, 3,001 cc and above, and that the pre-arranged fuel tax be paid at the next road tax renewal.
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Prof Dr Shazali Abu Mansor from USM – IDIOT
Raub MP Datuk Ariff Sabri Abdul Aziz – ANOTHER IDIOT
Tan Sri Nor Mohamed Yakcop – Ada otak sikit
Gomen bodoh, country bodoh
that Raub MP is D*P member n MP maa….
Suppose…govt bodoh, pembangkang pun same bodoh..2×5
KZM ini kroni BN kah?
Continue support Barang Naik lagi bodoh!
These bunch of idiots. What subsidy? The market price of fuel has gone down long ago while the G controlled fuel price stays the same. Still want to hike the price? Not enough songlap kah? If G think that targeted cash transfers will help low income earners, then they’re wrong. What the People really want is a quality and affordable car. If G want to help, remove the obscene excise duty and import duty, and stop protecting the crony-king Proton!
I want affordable house n high income first…
No matter how high of your income,
blood sucker will never stop to suck your blood..
Sucker is getting more n more.
How much blood we have?
or how much blood you can donate to Barang Naik?
Affordable house will be big fat day dream only.
FYI, Indonesia’s subsided fuel is RM2.58. So it’s very likely you are wrong to say there are no subsidy for Malaysian fuel at RM2.20
More excuse to songlap. A talking racoon has more sense than this academic
Our universities produce all idiots kah?
Gov university set up by clever cronies to produce idiot to serve them.
Makes you lack of economy view, analysis knowledge.
Makes you as idiot graduates to be their slaves.
Slaves eat kangkung everyday.
Work hard, get nothing, all contribute to cronies G
Ini skim cepat kaya gomen
Don’t use displacement as guide. Use the market price of the car instead. The 1.ol ecoboost Fiesta is far more expensive than 50 years old 2.0 Volvo. Not forgetting RX-8 1.3l rotary engine.
Shhh…. leave my RX-8 out of this… don’t spill the beans… they probably won’t know what’s an RX-8. It’s just a normal 1.3 litre engine I say… nothing special… move along… move along… next discussion…
They should use efficiency and not cc as a guide. The more efficient the car is, the less tax it has. For RX-8, not sure how efficient it is though
The OBJECTIVE is to reduce the country’s yearly burden in subsidizing fuel.
Two main users on subsidized fuel are
1) Small cc cars – as they make up 80% of the cars on the road.
2) Commercial vehicles – as they consume the most subsidised diesel and some used for smuggling too.
The think tank team must take this into consideration and not blindly make irresponsible and unsubstantiated statements like targeting certain high value or cc cars.
Otherwise the objective will not be met.
The think tank should consider using the JPJ dept as a rebate ( BR1M style) centre for those low income car owners upon their road tax renewal.
Certain conditions must be met to be eligible
1) Must not exceed a certain income range
2) Must be an individual, Not a corporation
3) One person to ONE CAR
4) Car must not exceed a certain price
5) Must be employed (Senior citizen and OKU exempted)
Terrific suggestions! I will support them. But fat hope from the authority who does not want to work for the average but the top 1% of the corrupt rich.
Better use limit per month all people get to use those fuel…use more than limit pay market price..
remove all subsidies, just give handouts to the extreme poor. the rich doesnt need subsidies, the middle income can still live with no subsidies, and the poor is not affected since they use motorcycles anyways
subsidies are like cancer, remove them before it destroys Malaysia. it takes a bold leader like our PM to remove the subsidy to spur economic growth! syabas government!
Pakatan would be the very 1st to disagree with you. To them, subsidizes are vitamins to Putrajaya and not cancer.
the opposition has a track record of square root of zero
ampu jangan x ampu…cukai kereta tinggi…xkn minyak pn nk mahal jugak
So the middle income earners always KENA….hehehe!!!! Is it fair? They pay yearly income tax plus other taxes but most of the time being ignored.
Don’t the higher income earners pay higher taxes already. If this is done, then income tax must be equal. High income earners also work hard for the money.
Dear MALAYSIAN, PLEASE don’t get rich or planning to be RICH, cause u r regarded as “rubbish” here cause whatever commitment u done to the economy WILL BE PUNISH!!!!! YOU’VE been warned……so in malaysia is “wiser” be damn poor, then wait for G to hand out money to nations, because “rich” ppl will be suck then channel to BR1M, so what the hell need to work so damn hard?
Lets face it. We don’t have the brightest people running the country…and even worst, acedemics don’t fare better either.
On one hand saying to reduce dependence on subsidies. Then the next say to give handouts.
Just float the bloody fuel price already. Afterall, RON95 only gets 0.13 subsidies.
You do not understand what is “targeted handout” and “blanket handouts”. In layman’s term, the former means it means only the poor get handout and the rich doesn’t. And the latter means rich people get cash than the poor.
We dont need fuel subsidy. Government should float the price long time back already. That is the right thing to do for the country economy and justice to its citizens. The government is going to get bash anyway. So better get bash and do the right things.
If they finally decided to do direct transfer of a sum of money monthly to needed people, better transfer it in the middle of each months. I mostly feel pinch on third and forth weeks of the months.
First of all, if the ppl from the top are clean, you don’t even have to talk about subsidies because the money they took can subsidize everyone. I am sure most of you guys agree with that.
Secondly, it is also unfair not to subsidize or reduce the subsidy of the middle class or richer group as they also pay higher taxes. If a person make their money through hard work, doesn’t mean they deserve to tax more compare to some of the lazier one who are poor. This will only caused the richer one migrate away from Malaysia.
Why not just remove the subsidy of petrol and together also remove the car import tax, the more you use, the more you pay. For those poorer ones who drive a motorcycle it doesn’t affect them much.
so if the richer one migrate from Malaysia, they still need to pay tax to the country they live and probably a higher tax charged than in Msia becoz its more comfort to be rich people in Msia than in Hong Kong,Korea,PRC except gulf country RIGHT?
so if the richer one migrate from Malaysia, they still need to pay tax to the country they live and probably a higher tax charged than in Msia becoz its more comfort to be rich people in Msia than in Hong Kong,Korea,PRC except gulf country RIGHT?
how bout market price fuel for weekdays…
subsidised fuel for weekend…?
What should be done by now:
1. Remove the fuel subsidy
2. Abolish the unreasonable car tax policy
By then:
1. No more smuggling fuel issue
2. Fair- the bigger ur vehicle the more u pay for fuel
3. People will go green!
4. No more AP-kronism (seriously why some people can get AP every now n then n not me?)
5. Most importantly- reduce the burden of rakyat’s LOANS(9years of loan for a viva-seriously i felt sorry)
Its not just about ‘driving’ or ‘owning’ a car. Its about living ur life. Surely these policies affected ur managemnt of money, purchasing powers, family plans, ur children(if u have any) and the list goes on. It goes beyond that.
I vote to abolish car tax. But car loan must be 5 years max. 9 years for car loans is not healthy. It make people tend to overspend.
suggest maintain the same level of subsides that actually fair to everyone including the rich and poor, since rich pay high tax and poor pay low tax or no tax at all.
to smuggler issue, the customs and border security
should tighten the security.
for benefit the rich? if they pay the same tax as poor then yes, it really benefit the rich. But in facts the Rich are paying more taxes than the poor but cant even enjoy the subsidies. LHDN should play their role to get the rich pay their taxes.
BR1M just some cash which is not enough to cover simple expenses. it like spoon feed the poor by using others income tax money.
mne subsidi kerajaan sdgkan ia dikecuali cukai…
bukti dgn mathematics…
harga sebenar termasuk cukai = 2.43
harga kawalan = 2.30
subsidi kerajaan = 0.13
ni mngelirukan bah…
brape cukai yg dikenakan? 10% or 6%?
biar cukai = 10%, harga sbnar = X:
X + 10% of X = 2.43
110% X = 2.43
X = 2.21 — di mana subsidi sdngkan ia dikecuali cukai?
biar cukai = 6%, harga sbnar = Y:
Y + 6% of Y = 2.43
106% Y = 2.43
Y = 2.30 — again… mana subsidi kerajaan?!
lebih baek biar floating bah…
Another BR1M? Now called Duit Minyak 1 Malaysia (DM1M)?
No, just replace the subsidies by dropping the car tax.
Thanks
You tolong kurang beban dlm minyak and elec bill. Bagaimana dgn brg brg yg lain. Ini memang fikir setengah jln… kalau harga minyak tu naik… u tak control brg runcit apa cam. Subsidi ni cukup sekadar beli seluar dlm aje… kalau tak pandai kira… suruh org yg boleh kiralah…
Ya, wang cukup untuk seluar dalam Suprima shj, tak cukup untuk kereta Suprima
JUST take out the subsidy once an for all..! Let it float according to market prices. This is the most opportune time to take out the subsidy altogether with a rise of less than 15sen per litre. Not going to have a second chance in the near future.
Money meant for subsidy then should go those who really need them… farmers and fishemen..!
Totally agree! Money should be spend to fuel the economy like fisherman and farmers as well as R&D in technology.
There are rumors going around these fishermen sell their subsidized diesel.
Not just rumors. It’s a fact. More income maa..No other ways. Siamese love to deal with Malaysian fishermen for fuel. Our fuel price is much cheapest than their price.
just different 0.13 cents..remove it lah..
they our G can shut up and everybody get Peace of Mind.