The T20 group, which is the top 20% of earners in the country, is enjoying some RM8 billion in fuel subsidies compared to the RM6 billion enjoyed by the bottom 40% (B40). This was revealed by finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in parliament last week, reported by FMT.
Under today’s blanket fuel subsidy, where everyone enjoys the same flat rate, this revelation isn’t all that surprising. Tengku Zafrul had previously said that Malaysia’s rich are enjoying the lion’s share of government subsidies.
“For every RM1 of fuel subsidy, 53 cents go to the T20, while 15 cents benefit the B40. So, for example if the subsidy bill this year is expected to top RM30 billion, over RM15 billion is subsidy to the T20,” he said in May.
The senator, in a written parliamentary reply, said that a mechanism for targeted subsidy is being tested. “The (initial) testing will be followed by more extensive testing,” he said, adding that the government wants to ensure the feasibility of the mechanism in both urban and rural areas.
“It (testing) is expected to take between three and six months before the new system is implemented nationwide,” he said, adding that the implementation of the targeted fuel subsidy mechanism will be implemented in stages to ensure it does not cause inflation or affect economic growth.
Fuel subsidies are expected to cost the government some RM30 billion this year. So, targeted fuel subsidy is around the corner – are you ready to pay more than RM2.05 per litre of RON 95 petrol?
What else T20 cannot enjoy ? Paid the most taxes among everyone, can’t enjoy anything.
Whereby M40 B40 paid the least taxes, enjoy everything, and complain T20
Go ahead, change yourself then. Become B40. Enjoy
People like you are just purely stupid. Guess you were enjoying yourself in B40, such a leeches in the country, contribute nothing and complain everything
It’s high time to remove RON95 subsidi rm2.05 per liter once and for all. The time is NOW, not tomorrow not yesterday, but NOW !!!
Got laa… duplicating head counts
To vote rather than paying taxes
without B40 you are nothing. PPl start rob T20. You want that happen?
DIESEL for comercial vehicle use and commecial vehicke all uae diesel. comercial should not have subsidy and comercial vehicle cannot use subsidy. Comercial is doing bisiness. WHY goverment expecially MOF allow Diesel subsidy for businessman millioair lorry buses van truck operate?
But you need to consider school busses and SME business which are using Diesel too. They are not making much too.
To become B40, i may have to close my small business and have to terminate employment for 6 staff.
M40 pays the most taxes my dude.
Also people living in Central having the highest cost of living compare to Northern or East Coast.. doesn’t mean T20 here are only rich people. U need to factor the living cost in Klang Valley too.
I do not think it’s fair for certain group of people. How about all this while T20 paying more tax!? I personally felt this are not going towards the correct direction. We definitely need to look at this at a whole lot more broader. Let’s say T20 already pay a huge amount of import & excise Duti when they are buying a luxury car. Can’t they get back a bit from government by enjoying fuel subsidies like other. Malaysia are suppose to have a governing system that encourage citizen to climb the income group. Not withdrawing from people that have make it or progressing. This will discourage future generation mindset
Vote! They need vote. They dare not to make their majority vote sources angry of them! That’s the reason why we keep absorbing more and more governent servant that become world highest ration of government servants against population. If efficient is high, we are ok but still with super low efficiency with the high number of workforces!
The petrol subsidy should be capped to RM 50/person.
Then fair.
Then
T20 tax payer use 20% of subsidy
M40 tax payer use 40% of subsidy
B40 use 40% of subsidy
Duno why T01 like to bully T20 as if they are filthy rich with starting salary @ RM5.5k per Parent/RM11k per household. No need to jaga anak², ibu bapa yang sudah Tua.
That’s the thing. A lot of people (especially from M40 and B4 groups) think that T20 is rich or is very difficult to achieve. That’s not accurate.
Say a married couple with a Bachelor’s Degree, both just finished paying off their study loans and just about to start a family after 5-8 years of working.
Both husband and wife are now working as Assistant Manager level in private companies. Each making RM5,500 per month, or RM11,000 combined. Congratulations, they’re now in T20 category.
Living Expenses in KL? High-rise (not even landed property) at least RM2,000 per month excluding sinking fund and maintenance fees. Utility and telco bills easily reach RM500 per month per household. Food and groceries nowadays with our weakening Ringgit, don’t be surprised if it exceeds RM800 a month. It goes up when you plan for your first child onwards.
And yes, at RM5,500 onwards, you start to pay income tax even after all the tax relief and deductibles.
You know who are the majority B40’s. For vote, simple as that.
I think no one is questioning how he arrived at that number. I think the T20 people are the sales people who drives a lot and claims all of the petrol cost for their tax liability. The B40 who work normal jobs wouldn’t typically claim any taxes and a lot of them pay in cash.
What I would want to know is HOW they know this exact figure. I think the finance minster is taking parts of some numbers out of context, only the numbers that he wants so that it paints the perfect picture for him.
for comparison, it should be offset with the taxes collected from different income groups. how much taxes do the government collect from B40?
You want to target T20 never mind. If you wantvto use figures to manipulate public, I can use figures too.
Based your info, 53% goes to T20, 32% goes to M40 and 15% goes to B40.
I am paying now rm26k for income tax. How much M40 and B40 cobntribute to Malaysia as tax yearly. I know should not based on my salary but just use mine as guide. M40 should pay rm15700 and B40 should pay rm7360 yearly. Do they?
In a company, business owners value the contribution of sales personal by given even higher commission if they hit certain target. Have you ever seen that a boss tell you since the sales personal with lowest sales has no capability (and never work hard to increase sales), let take from a portion of commission from top sales and give to worst sales. Pandai punya boss tak payah keluar pocket sendiri. Do you think the top sales will agree? Same thing here! Work hard yourself to get what you want! Buang tongkat! I only agree to remove subsiduary if government no more affrd to raise those lower income groups. Be fair to everyone especially to those that really contributing to Malaysia!
In all fairness – how much more tax is the T20 contributing? Likely more than 50% of the whole countries tax.
Government should look at how to teach the B40 to fish rather than fish for them. For decades, these group of people are not progressing and causing a huge burden to the society and hindering the nation in reaching high income status. Those B40 groups that are not helping themselves should be left behind.
I am curious how Minister got the figures? How does he knows who refuel using what fuel grade?
Just grab from air based on his imagination! If everyone paid by card, then IT can help to analysis from the big data but many still paying with cash which cause long Q during peak hrs. To be Malaysia minister very eady, just need to tokok!
Dah banyak beri B40 Bantuan,
Why not just add Petrol voucher/e-wallet to them?
Petrol station and operation should keep simple.
B40 don’t want others to know they are B40 when facing public.
T20 can afford EV anytime. Please don’t come after M40 when T20 stop using your precious B40’s fuel.
No i don’t. I drive 2022 Vios and a Axia.
RM6k x 12mths = RM72k x 2 = RM144k per year household income.
I can’t afford an ev, or is it 2 wheel ev you are talking about?
You’re M40 M2
T20 can afford EV anytime. Please don’t come after M40 when T20 stop using your precious B40’s fuel.
Government enjoy additional money from taxing T20. Ignore facts and complain about unequal fuel subsidy.
Subsidies of any kind don’t work, especially when their only objective is merely to win votes. It’s like comfort food, enjoy today but pay tomorrow.
They enjoy everything from the government. Yet, they declare their company loses every year just to avoid tax. itik betul
Instead of witch-hunt blame punishing own rakyat regardless of income group on petrol subsidies, govt should revise update its archaic motor vehicle law that prohibit old vehicle being converted into EV electric car
By allowing petrol car converted into EV car, it will definitely a game-changer in entire auto industry from new module training for automotive skills students, EV car parts supply chains, existing car workshops have new income from EV conversion works etc
There are many cheaper options for EV car conversion with short range battery (100km-150km) suitable for urban driving such as Transition One (France) for Euro 5000-8000 and many other firms as shown in media youtube etc
For automotive sites like Paul Tan etc, they should recap back previous articles on such topic and bring it to govt’s attention that old car EV conversion also a way forward for mass public EV car adoption alongside the new EV car market so that every segment of society and business can have wider choice of new or old car (EV version) and giving new lease of life to many old/existing cars as EV car
It is very sad that govt being heavy handed on petrol subsidies but less proactive on reducing petrol dependence such as allowing old car EV conversion that may help T20 owners of transport logistics to convert their existing fleets of trucks/vans/taxis into EV versions, not to mention the general public as well
T20 are shaking right now..
Sembang… coming from people receiving petrol allowances of more than some of your monthly salary while wanting to stop others from enjoying the subsidy.
He failed to mentioned how much taxes the T20 paid to the government. Why discriminate against the T20? Aren’t they Malaysian? Malaysia government loves to divide the rakyat due to their failure to address this issue when the oil price was low, they missed the opportunity to introduce any subsidy reforms. It’s better they just take away all oil petrol subsidy away and gives the cash straight to the B40…no B80 now since most of the rakyat affected by Covid-19.
How about excise duty?
yeap, everyone, just stop working so you can enjoy subsidies
they should also list out the amount of tax collected by gov from T20.
if the subsidy used by T20 is just a small percentage of the tax collected, whats the hoohah here actually.
I am paying rm26k income tax yearly now. Do you think I need to pump rm2k fuel every month?
T20 travel more to support and develop the nation . Of course , they use more petrol / diesel .
How about if they (the ministers) , stop taking allowances .
I say its not fare to determine base on income. It probably better if determined thru type or price of car purchased. E.g. those who can afford to buy a RM200,000 car wd easily means can afford to pay more for the fuel. Dont generalise all T20 to be excluded from the subsidy. There are T20 who focus on children education, medical and for that matter they can only afford to buy less than RM200,000 car. Of cause there are negative impact to the business but its farer to our people.
But don’t forget that the person who bought the 200k car paid way more in taxes (import duty etc) than the person who bought the “cheaper” cars.
Betoi, gomen lu sendiri dah open tau diesel itu only comercial T20+ tauke besar boss boss level millionair punya syarikat punya lori bus van truck yg pakai je, lu masih approve. (DIESEL ITU COMERCIAL USE why give subsidy???) Next Press Confetence, tolong kasi tau , kita sengaja mau kasi T20 boss boss, sebab diesel *only boss boss syarikat je yg pakai tapi kita tak float marmet price
Mau test apa 3 bulan???, DIESEL TU COMERCIAL USE for syarikat tauke boss besar, besok boleh floating terus price diesel.
They also forgot to mention the T20 also contributes hefty taxes that the govt uses for the country while the B40 pays little to no tax at all which does not help the govt coffers.
yes i am waiting to pay more for fuel. I am also waiting to charge more to customers for products and services i sell:P
Sorry Im not T20
Don’t remove my subsidy
Says the person who made the largest loopsided budget while cannot provide any evidence up till today that T20 consumes that much petrol subsidy?
Logically, only Household have more burden.
There are family elderly and kids to support.
Every inflation is easily multiplied 3 to 8 times, depends on family member the parent is supporting.
Household B40 is up to RM4800.
Single but salary up to RM4800, how is it poor?
Only senior citizen/young kids’ parent Critically looking to be subsidized.
Not simply B40.
Come on.Tengku Z…if T20 is given blind subsidies,then tax then accordingly kaw,kaw.
Pls dont kacau the M40,a sizable portion of us have dropped into just above B40.
Make no mistake..once u jack up petrol by 50sen..inflation sets in immediately.
So,for commercial vehicle..if diesel market rate kicks in..all hell will break loose from Lazada to your Courts Mammoth furniture.
Many businesses are still not out of the woods yet.
WE r just adjusting to another wave of Omicron.
Let the Bank of last resort..Petronas do some national service until Brent or WTI crude drop to US 50-60 a barrel.Then float the petrol price.
Last month u said gomen can manage.Now the story changes to target testing .Which one to believe?
T20 group not Malaysian? They not paying taxes? Is not fair to them…Failed Government…If you want to subsidies, please provide full subsidy, you make people feel that they are not Malaysia and you still got face to call 1 Malaysia.
Yes. I’m prepared. As the T1 in the T20 group I dont think it’s fair to continue taking away what is actually meant for the B40s. The govt should have done this ages ago.
How much longer will Msia survive if we continue to get subsidies when we are not supposed to?
kami bayar cukai pendapatan 30 persen woi
Government enjoy how many billions in T20 tax?
I would like to very much understand how is this computed.
B40 use less fuel subsidy because their transport needs are less? They drive lower cc cars or Kapcai? Or they took public transport? public transport punya fuel subsidy and grab car categoried under which segment? company registered vehicle categorised under which segment?
I dont recall filling up a survey about my income when I visited the pump…
without understand why it happened, how to target?
I wonder what is the percentage T20 paying the income tax?
T20 also pay more tax why can not have subsidies?
Aiya why gaduh gaduh. Easy to settle. TgZ said want to test on targetted group. So test on T1 and minister first. They hv many expensive cars like falali, lembugini, pushe, mekleren. Want to test for 10 years pun ok. Settle ma
This country will eventually be left with M40 & B40 only.
Just dont understand why gov want to test this initiative on the petrol subsidies mechanism regardless of T20 or whatever group.
They should focus on bringing up the Malaysian income and control on your gomen expenses.. bring more investor and not halau them out.
Hey Mr Govt, its about time you change the bracket to B55, M44, T1. The T20 consist of those so-so T19 vs the super rich T1.
Dont make those who strive to do better become a sin in Malaysia. You earn more, the govt gonna screw you. If this is not aiming for class mediocrity, what is?
Mr Minister, just you allowance (pocket money) makes you T5.
The breakdown of allowances that ministers can claim on a monthly basis are:
RM12,000: Entertainment allowance
RM4,000: Cabinet minister’s allowance
RM4,000: Housing allowance (not claimable if residing in an official residence)
RM2,500: Domestic helper allowance
RM2,500: Driver allowance
This totals $25k per month allowance, $300k per year.
And then MPs in Dewan rakyat:
RM400 per day: Attendance for Parliamentary sittings
RM300 per day: Attendance for government agency meetings or workshops
RM2,500 per month: Entertainment allowance
RM1,500 per month: Special payment (except if the MP is member of the administration)
RM1,500 per month: Fixed travel allowance
RM1,500 per month: Fuel allowance
RM300 per month: Toll allowance
RM1,500 per month: Driver allowance
RM1,500: Black-tie attire subsidy
You further enjoy travel, fuel, toll allowances totaling $3.3k.
So if you make so much noise about T20, please propose to cut all the allowances for ministers and MPs. You guys enjoy free police escort, free fuel, free ini itu, and you sit in parliament suggesting to further torture T20. Go chase after all MPs and Ministers, then T1. The rest of T19 are just small fries. Someone qualified to T20 couldnt even match your pocket money allowance!!
T20 tiering & calculation need to be revised. Not based on household income.
A couple in the late 30s with the position of middle management with 10-15 years of working experience easily earn 10k each. Meaning based on the current calculation they already fall under T20 cat.
The actual is, they are just a normal family with kids still in school & juggling with the job & try to meet month end. Living in KV will hammer them more…
It is not fair to T20 because we pay taxes a lot.
The right thing to do is to reintroduce GST. The more we consume they more we pay taxes. If the government starts to treat citizen differently, this country is doomed.
now and onwards, go back and threaten your boss and HR.. jangan naik my pangkat & salary CB.. i want my salary range at ngam ngam below M40 border line.. you give me increment and i beat you ahh
Just remove the subsidy away. Fair for everyone. B40, M40 and T20, everyone work hard to get their own pay. M40 and T20 pay the taxes and in return get nothing in return but continue to pay tax and facing rising cost of living.
Prefer just remove the fuel subsidy once and for all. Want save fuel expenses then buy fuel efficient car. Even the tax free for EV, how does it help. Myself in so called T20 also can’t even afford one as I have a family to feed.
Always spoon-feeding the B40, mindset to work hard to get better life will never change as government will be always there to help them. Sorry if this statement is offensive but this is the fact as that Malaysian’s ‘tidak apa’ attitude.
My suggestion is Malaysian with IC / PR received fuel voucher of RM200.00 per month. Lets see who finished them off first. Off course the T20 group. They are using large engine that consume high fuel while B40 only can watch because they did not have anything to do with the fuel.
Without T20 Paying tax. The government may have no money to pay subsidy…. Watch up ..stupid FM
Rather than spend the tax payer money to subsidise B40, why don’t use the resources to grow economy & move rakyat to T60???
Wait for new gov to decide la. Why publish old news
Why are we T20 paying the most taxes and still unable to enjoy more subsidies? Where’s that logic?
Try Move to other country see how T20 benefit there?