The targeted fuel subsidy for RON 95 as announced in Budget 2019 is set to benefit four million car owners, but they will not be those in the T20 segment or those owning luxury cars, The Sun reports.
“I can say that (owners of) luxury cars, don’t hope to get the fuel subsidies,” finance minister Lim Guan Eng said in response to flak on social media over the possibility that those with luxury cars with a lower engine displacement could capitalise on the fuel subsidies meant for lower income groups.
The targeted fuel subsidy for RON 95 is slated to be introduced sometime in the second quarter of 2019. The scheme will provide a 30 sen subsidy per litre (depending on the price of petrol) limited to 100 litres a month for cars with an engine displacement of 1,500 cc and below, and 40 litres for motorcycles with an engine displacement of 125 cc and below.
It was announced that owners with multiple cars will not receive this benefit. Expected to cost the government RM2 billion a year, the scheme, once implemented, will see RON 95 pricing moving to a managed float for non-subsidised vehicles.
Concerns raised about the scheme following its announcement centred around the point that it would benefit owners of luxury and premium cars with smaller engine capacities, with car models such as the Audi A4 1.4 TFSI, BMW i8 and 318i, Mercedes-Benz C 200 and A 200 and Honda CR-V being eligible, if the criteria was simply based along the lines of engine displacement.
Lim said the subsidy was targeted at the B40 group. “The government initially wanted to target the B40 group only but upon consideration, may extend a bit to the M40 group,” he said, adding that the mechanism of the scheme is being worked out and will be announced later.
On the same subject, domestic trade and consumer affairs minister Datuk Saifuddin Nasution Ismail said that eligibility will take into account the income level as well as the age of the recipient’s vehicle, Bernama reports. “We need to know how many Malaysians still own old vehicles, as every formula we work out has to take into account its implications on the government’s coffers,” he said.
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Pajatan Harapan equal Pakatan Tiada Harapan
Squeezing tax payers to pay for non taxable of B40 groups .
Coming to communism era
Voting Lim Quan Eng out next election. Useless
You’ve got a point there
Taking money from hardworking citizen and giving to lazy ones
I don’t know why everybody is upset with this budget and Ron 95 subsidy. What do you expect?
We allowed 60 years of massive stealing and corruption to take place. Each person stole up to billions each. In total, we lost about trillions in corruption alone.
And we allowed all this to take place. It is our fault. If trillions were not stolen through corruption and stealing, today, we can have toll free roads, cheap cars and even heavily subsidised petrol for life.
So why blame LGE and PH? Blame ourselves. Blame you and me. We allowed the country to be raped so much that until now, the country also got no money to give Budget goodies to you and me.
Don’t point the finger and blame people. Look at the mirror and blame ourselves. We allowed 60 years of corruption and stealing to take place.
Eh? Weren’t we fighting for equality and fairness? So isn’t that the point of equality and being fair to all? That the haves should help the have nots.
So why complain now? If you don’t like, donate all your properties and money away to live like the B40s so you too can get money from hardworking citizen. Is that fair enough for you?
for equality and fairness society , projek and tender must go to bumi 1st. donate our properties and money away for country good.
CC, vehicle model, vehicle age and owner’s income all has to be considered
giving to lazy ones , taxi driver ??
Lucky me coz you are not a minister. Haha. Did you think with your hardworking you can be richest man in the world? Think again.
Yeah, when husband and wife work 10-12 hrs a day, 6 days a week for salary below poverty line and get not much quality family time is considered ‘lazy’ – typical kiam siap taukeh mentality.
A street cleaner work very hard everyday to make sure our street are clean. An auntie clean our public toilet everyday to make sure we have a clean toilet to use. They earn RM1200 a month. Do they consider the lazy ones?
sweeping the streets 7 days a week doesn’t give you any rights to take anything from other people.
rich people paid way more in tax than poor people,yet the system like to keep giving away the money to the poor.
you want communism,Venezuela here you go
just because somebody earns lower than you doesn’t mean that they are lazy..such selfish mentality
1.5liter and below New car on the road price must be less than 60k otherwise considers as luxury premium.
I cannot stop laughing. So many fanboys were condemning LGE. Now they don’t know where to hide their fce. Malu
You stupid..what your tax good for..so do something benefits those underprivilege.
Well, outside of Malaysia, these are also the same practice everyone. Need not to be communism country. In European countries, there are social welfare given to the poor or low income people but there are high income tax apply to high income people. We considered ourselves lucky where petrol still cheaper. You go other countries then you will know what is expensive petrol.
So is VW considered as Luxury car..?lol….
Proton owners who own the 1.6 model gonna be so regret by now..
Nope. No regrets. Im not poorman like owners of C200 (some say this is used as taxis in other countries, so its not luxury car).
B4 election – manifesto no price increase
After election – no affordable & floating.
Good tactics
what is a luxury car?
honda civic, crv arent cheap cars, but they arent luxury cars either.
fact is. let the prices of fuel float, and then remove the exorbitant important duties and taxes and what not.
after all, why should i pay so much for a car if i do not get to use it often? Many of us buy a car for convenience/leisure purposes. people who drive more/use the road more should be the one taxed.
Is b40 capable of buying 150k cars? If answer is no than its luxury to them. Understand the target group category
if you saved enough, why not?
there are people who want to drive a better car… they sacrifice on other things…dont travel so much, dont buy luxury goods, dont go concerts, eat cheaper food….so is it fair they be penalized for owning a better car?
Something that I fully agree. I don’t mind expensive fuel if cars are cheap enough.
Hahahaha! Nobita oh Nobita! How do you define that! VW got cars that are in the affordable and the luxury categories. Both having engines which are below 1,500CC. Think again Nobita!
Hi nobita, dun get butthurt dun get subsidy ya
What bout those p1 cars with engine 1.6L@1600cc?
This the same one that forces a devaluation of property just becoz got no swimmingpool one?
“I can say ….”
that petrol prices will be capped at Rm1.50 per liter.
that tolls will be abolished the day after we tookover.
that PTPTN will be waived and all unis will be free.
that minimum wage will rise to Rm1500.
that you must trust me. I can predict the future because I have a time-travelling robot cat. Dont playplay!
You got me at the time travelling robot cat.
He can say a lot and he can say anything, but what we want is actions not words. Those promises that he says previously pun belum ditunaikan, apatah lagi cakap angan2 ini.
He thinks he can control the rich from bypassing & finding loopholes in his poor policies? He cant even fakking control the price increases for both MRT2 & LRT3, and then gives a sorry excuse that it is a cost reduction!!!!
All these selected subsidies will be subject to abuse. If the purpose is really to help out those who need it, why not give a fixed subsidy (like BR1M was) to the B40 group through LHDN (they have to register/declare their income to LHDN, who then verifies this). What the recipient does with the money, whether to buy petrol or go shopping, is entirely up to them. That way no need to come up with some special card for use when fuelling. And will force everyone, whether B40, or foreignor to pay the same for fuel (at a floated rate).
Still excludes 1.6 l cars owners, guess them wira, satria, iriz, persona, old corollas, civics, sentras all with 1.6 L engines are ‘premium’ cars… Stupid tokong
I am surprised that LGE can be so shallow in his thinking.
Last time when opposition they keep on saying it is not subsidy as Petronas belongs to rakyat. Now when in power they say it’s subsidy. Plus tolls are not abolished when Tony Pua said it’s very easy to abolish. Typical politicians.
Angan-angan taik kosong sajelah. Macam dulu RON95 dihadkan utk rakyat miskin tapi masih ada Merc dan BMW yg isikan RON95. Phoi!
Habis lah PH , rich car pipu sapott nw gone ….
Lost the support of rich people with 1.5L luxury cars, lost the support of poor people with 1.6L above cars, lost the support of M40 which gets no subsidy. Abesla PH!
how do you define “luxury” or “premium”?
in europe and US, VW or peugeot are not considered as luxury or premium brand. only in malaysia, they who drive VW, peugeot… some of them drive honda also think they are driving a luxury car.
So susah for what?
Just say only cars under RM50k qualify regardless of CC la. If we are targeting the lower income, why care about CC of the car?!
2nd hand BMW E46 below 50k… Still qualify or not? Lol
Car value can depreciate, this year my car worth RM60k, next year can be RM50k in value. How you judge this?
Rather than categorizing which car is considers as a luxury/premium brand, the ministry should provide fuel full subsidies to those cars that are price below RM 100K OR provide different levels of subsidies for cars priced below RM100k and below RM150k when bought new. besides that, how about
1.) Introduce different grade (euro 4 and above) of fuel quality to counter subsidization levels?
2.) Explain on purchasing mechanism to claim the subsidies.
3.) Does this promotes reduction or price hike on budget and luxury taxi/e-hailing pricing strategy?
4.) certain cars are handed down by family members and some won the cars from competitions, so how the ministry wants to justify from a person’s income level?
tbh ministry should have an open discussion with the public on how to implement subsidies prior to present at the belanjawan 2019.
30 sen subsidy only limited to 100 liter per month? I just knew that. 100 liter only one week for me and another three week I don’t get that subsidy? Oh, I still drive 1.6 persona from 2010. Do I able to get that subsidy? And I am not rich.
Will be very dizzy upon implementation. Easiest way, national car only enjoy subsidy. This would boost our own national economy and strengthen RM. 3rd national car should be EV and sophisticated tech intro. P1 sell high end car while P2 sell budget and economy car. P3 will be EV and advance tech without using petrol. P4 to be intro for Luxury and it goes on until P(infinite). Then Malaysia become auto hub. So everyone buy Malaysia made only. Then all car only being service with 15% tax not 200% because its local car. No experience in building car, easy. Just hire ex designer from Italy, Japan, Korea, China, France and German. Give them good salary and your car will be pretty as hell. Malaysia mindset is way to rusty. Learn from Hyundai, they hire pro and become global car maker now.
Once and for all please get rid of this mentality. There is no way the government will be selling petrol at a loss, it’s just missed revenue. This subsidy thing is total bullcrap.
B40 group is the least efficient group when it comes to productivity. If you want to help them get rid of the tongkat and let them stand. If salary alone is not enough to cover expenses ask for a raise or take up another job.
Another political coy this subsidy thing.
Facepalm forever. Malaysia baru it seems.
Low productivity? Then who’s going to be your cleaner eh smartass? Your receptionist? Your tea lady? Your junior technicians? Talk from butthole. I want to have them around b’cos they’re cheap labor. Good that govt support them, and not from my overhead. otherwise they ‘ll probably have to resort to crime.
That’s good to hear.
But what about the owners of many of the Proton cars? Since many of them have 1.6 engine capacities.
What is the definition of luxury car?
Is b40 capable of buying 150k cars? If answer is no than its luxury to them. Understand the target group category
My neighbour is a B40 but he works 2 jobs plus his wife as well, and he was therefore able to afford an Estima becoz he wants to transports his kid in safety and comfort. Is he not qualified for petrol subsidy then? Don’t discriminate based on what cars they own!
The price above 100k?
Keep it for yourself la.. dont treat malaysians like beggers. You think rm30 a month makes a lot of difference even to the poor with your Sst still in place? It makes no difference from Gst era. Worse still now kena other forms of taxes
Promises unfulfilled but worse still Rakyat are the ones kena punished after election
Don’t say words you’re gonna regret
Don’t let the fire rush to your head
I’ve heard the accusation before
And I ain’t gonna take any more
Don’t leave false illusions behind
Don’t cry cause I ain’t changing my mind
So find another fool like before
Cause I ain’t gonna live anymore believing
Some of the lies while all of the signs are deceiving
-Leo Sayer, Eye in the Sky
Honda CR-V is not a luxury car! I think we should not discriminate luxury cars…besides if I drive luxury car I will not give my car dirty euro 2M ron95…come on at least give Euro 4/5M the world has already move to 6M ffs
I mean compared to a Merc, no lah duh. But it is, c’mon. It’s a 100K car. How many Malaysians can afford a brand new 100K car. The average household income of Malaysia is RM5,900.
You can even say “I will not give my car dirty euro 2M ron95″… Clearly to complain about such things, you definitely are in the upper T20 class of this country.
Based on engine capacity? What about 1.6 malaysian car users? Bad system..
I wanna downgrade my altis 2.0 to L500 660cc turbo engine lar. And downgrade my kawaski Z1000 to honda wave 125 cc engine. So that i can benefit the fuel subsidy lols.
Those rich men that would like to enjoy cheap fuel, just trade in your Benz and get a Myvi, Axia, Bezza… Even Alza (which is P2’s Alphard equivalent)
At the end will include:
-All 1.6l national car and below (non turbo variant)
-All other 1.5l cars and below (non turbo variant and less than 100HP)
-Current market value (insured value) below RM30000
-Owner must possessed only 1 vehicle
-Owner must earned less than RM3800/month
-30l max per week
-100l/month RM0.30 subsidy per liter, pump with IC chip reader.
I think the cost they needed to enforce all these rules could have been same to just subsidize RON95 for all aka stays the same lol
Of course lah! I can’t believe ya’ll would think they would let luxury cars off the hook with this subsidy. Mechanism aside, I support this. Those who can afford expensive things don’t need subsidies. Malaysia Baru needs a jumpstart, so tighten your belts, pay a little more tax, know where the money is going, and see dividends in the long run.
Then do not collect income tax for groups above B40.
If you just want to subside only B40 , just tax those in this B40. Why take income tax from other groups and pass it down to non paying tax group of B40.
Why people paying income tax is a must but getting some benefit back is illegal except those lazy one in B40 group.
Oh yeah, I can see where my money go into; a blackhole called P3 and a bigger blackhole called Crooked Bridge. Dividends? What dividends, except to keep the old man happy and not send me to jail?
How are they gonna enforce? Put one person at every fuel station pump?
PPS purpletroopers will be reactivated and expanded nationwide. It will be rebranded as Patrol Petrol Subsidy and each station will have round the clock Oprichniki to ensure no abuse take place. This is expected to create 10,000 extra jobs opportunities, so dont persoal this idea. It’s from his brilliant ingenious mind.
The control mechanism can be in the form of subsidy card, just like Petronas Kad Mesra. You need to apply and prove your eligibility.
Don’t worry. Nobita always have Doraemon to help. Remember?
Everyone remembers Harapan’s promises before election. Cheap petrol, cheap cars, toll-free Bla Bla Bla. They all seem doable with calculations by the so-called in-house experts.
When Guan Eng tabled the budget, we find that the budget is not much different from previous BN government.
We know about all those talks regarding paying off 1 trillion debt is all bullshit because the cabinet ministers themselves don’t want to cut their salaries from over 50k a month to that of middle-income level as a mark of solidarity with the people.
So, don’t go dreaming about cheap petrol or abolishing import duties or public transport improvement because it’s definitely not going to happen.
That’s the reality, people. Politicians use us to secure their pension. Suck it up.
A 75 yr old poor man still drive a 36yr
cranky Merciless(Marcilee?)2000cc that fetch ab 5km/ltr. Can he apply for the subcidi?
Chasing Rm30/month.. haha. So short minded. My kangkung plant tepi parit even provide me with 600/month sold to indons. Get em at selayang pasar borong.
Good move by Finance Minister! Keep it Up!
just give subsidi to motorbike
poor still buy car for what? still want subsidi?
kuku brain with kuku idea
Surely an old car with a high engine capacity cannot be considered a luxurious car.
I am not so concern about the 1.5cc. I am more concern on how the hell they are going to track each consumer to monitor how much petrol they have put in. Do we have to swipe our my card or what? Or do we go to collect the fuel coupon at 7E to redeem our subsidy?
When stupidity strucks.. what will the drivers who using secondhand old car which is 1.6l.. so that secondhand vehicle is a luxury car..? remove that stupid budget proposal, go back into the the think room and redefine it.
Socialism mind set ..instead of encouraging more industries to larger the pie, what’s wrong with people earning more now ?
Taking away GST has no price reduction at all in the market ! And now all these BS policies tax here tax there just cutting individual gross spending capability , we shall see inflation increase next year when USD tighten again
So Gov lost all GST income , price no reduction and market, further tax everywhere , and everyone disposable income lower will be the outcome , PH failed big time in economy planning !
People who drives luxury cars are not bothered about the subsidy. Its the middle class with old Protons & Jap cars that are affected.
Impending failed system.
Malaysia has the siliest system. No matter what, government will always find ways to get to your money.
They say buying kereta buatan Msia is cheaper than imported ones but fact is, you pay less for the car yet more for hire purchase interests!
New gomen, quit it with new implementations. Face reality and simplify the systems please. Stop caring for middlemen’s pockets.
This policy is funding
1) mat rampit super man
2) those loan ptptn and not paying back but still buying cars
NASIB I USE 1.5TC