Vehicle engine capacity data from the road transport department (JPJ) will be among the resources used by the Malaysian government in the creation of the targeted fuel subsidy mechanism in order to determine which users are eligible for the future targeted fuel subsidy which is almost ready, reported Bernama.
According to domestic trade and cost of living minister Datuk Seri Salahuddin Ayub, the ministry has discussed the matter with the ministry of finance, the economy minister Rafizi Ramli and the JPJ, according to the report.
“In terms of the data, they are almost ready to be forwarded to the prime minister on how we can implement this targeted subsidy,” Salahuddin said, adding that the JPJ database can identify those who are eligible for the targeted subsidy based on the engine capacity of the vehicle they own.
The proposed paper on targeted subsidies was presented at the meeting of the National Action Council on Cost of Living (NACCOL), which was held last Tuesday and chaired by prime minister Datuk Seri Anwar Ibrahim, Bernama reported.
“The prime minister has given instructions for [the targeted subsidy mechanism] to be studied. But for the time being, the government is continuing the existing policy, which is so that we do not withdraw [subsidies] or increase any tariffs that we feel could burden the people, so the policy will continue until the cabinet decides on the [targeted subsidy] later,” Salahuddin said.
At the end of last month, the prime minister gave the relevant government ministries a duration of two weeks to discuss and analyse the matter of targeted fuel subsidies, including that for fuel.
“I have no problem with subsidies for the people, especially the poor. But our explanation in full, when it comes, is that this sub-section should be targeted. Otherwise, like in the case of fuel subsidies, the subsidy benefits everyone, including the rich,” Anwar said at the time.
Ongoing development of new vehicles mean that a vehicle’s capability is not strictly tied to the capacity its engine displaces, and so there will be a need to establish the difference between vehicles by more than just engine capacity as a measure.
For instance, the third-generation Perodua Myvi facelift with a 1.5L engine was priced from RM50k at launch in November 2021, while the W206 Mercedes-Benz C200, which also displaces 1.5 litres, was priced at RM288k at launch in February this year. Each of these vastly differs from the other in terms of pricing, market positioning and therefore the cost sensitivity of the customers targeted by each car.
Fuels that are currently subsidised in Malaysia include RON 95 petrol and diesel fuels, with the ceiling price of RM2.05 per litre of RON 95 petrol introduced by the Malaysian government in February 2021. The price cap for Euro 5 B10 and B20 diesel fuels is RM2.15 per litre, while Euro 5 B7 diesel is priced at RM2.35 per litre. Meanwhile, unsubsidised RON 97 petrol is priced at RM3.35 per litre as of December 22, 2022.
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Based on engine capacity is a joke
Just use the blardy LHDN data..n tax those who buy brand new 1.5 turbo or 2 litre cars( or those less than 4-5 years old)like Accord,Camry,Merc,BMW.
Wah,those 1.5 turbo X70 SUV owners must be enjoying fuel subsidies,based on engine cc.Is this fair?
those who can buy brand new 1.5L or 2L cars already are paying higher income tax.
Why not remove all taxes for all brands then people will have more opportunity and end of protectionism for proton and perodua
We’re talking about fuel subsidies and you start talking about your inability to buy expensive cars because of protectionism.
Can do Simple combinations of…
[owner profile] #of car actively-owned
[vehicle age] Year of car manufactured
[vehicle value] To excl exotic, classic cars
Do the same for bikes too
1,300cc Motorrad vs Myvi 1.3
LHDN database is also not perfect
Do you know how the rich especially businessman use creative accounting and pay very low tax
It is the middle working class employee that are paying a lot of income tax
Tiers go up for the higher income. No?
Why not subsidies for 2.0L and below then everyone will buy
If you don’t like this, go and vote PN la.
PH is the best. Anthony Loke is the best. Nga Kor Ming is also the best.
what if targeted subsidy based on car price? no b40 will buy rm200k car. what if t20 buy axia, myvi only? anyhow t20 will still be t20, they still will buy expensive car. but in the end this will result less/no demand for above rm200k car, but more demand on recond/2nd hand car. no sales for new car, they will make all new car become pre reg/demo car and decrease price.
U really think T20 will care about the petrol price and doesn’t buy car above RM200k ? Lol…naïve B40 mindset
Unsubsidised RON95 (low-grade EURO4)
Around RM3.15 per litre (current price)
Around RM1.10 per litre (subsidised)
40L tank X 4 weeks = RM176 ONLY
M40 go shopping, decent meal
Also more than that la…
What if T20 person uses 1.3 car?
Then U should salute that person
After all, already paid income taxes
Thanks for the wonderful idea PT. Gonna book a C200 with Hap Seng now.
Kalau C200 tak lepas bulih beli civic tak ketam. Itu pon 1.5 tebo
How about the a rich man who drives a 2.0liter A class , compare to a grandpa’s Toyol Cressia? No logic la based on fuel capacity.
Firstly ask yourself, why is he richer? hard work? skilled? Less lazy?
Born into richness and a lot more opportunity to study higher and become rich. Come on la, tau mana langit mana bumi dahulu.
Tak mau study smart blame rich. Want to feed to your mouth isit?
Poor B40 will always complain about others. What have u done for the country except crying ?
At least T20 is paying ALOT OF TAXES for u to complain
Most of the time kita duk warung membawang, layan social media, fb, TikTok…jadi netizen, keyboard warrior sapot politician. Itu lah kerja kami. Bukan Kah itu sumbangan kepada negara?
Orang miskin bawak lori hailak kat Sabah & Sarawak macamne pulak? Semua cc besar2
Pakai hilak xmiskin bah. “Hailak tak murah”
Bakal mak mertua suruh beli kereta jenama H baru dia bagi meminang anak pompuan dia. Macamne ek?
refer my name
“I have no problem with subsidies for the people, especially the poor. But our explanation in full, when it comes, is that this sub-section should be targeted. Otherwise, like in the case of fuel subsidies, the subsidy benefits everyone, including the rich,” Anwar said at the time.
The thing is how do you define “rich”? Is it anybody in T20 bracket? Mind you RM10k combined house hold income isn’t that much to begin with nowadays. For 10-11k salary, you’re paying 1.5k in tax easily and in most cases higher than your car installment payment.
We got the best Minister in the world. We should put trust on him. Because he got so many powerful formula to reduce toll prices, foods, petrol bla bla… More to come!
We vote u to ease our burden, not make our lives harder.
Also have to balance many factors into it. Such as country’s growing debt, economic factors, small percentage of taxable population
Every country in this world is growing in debt, USA alone is 300 trillion and they never care because one day economy collapse and they will create new system again.
Maybe fuel subsidy for car weights less than 1.3 tonnes?
What abt Mazda mx5
myvi only 980kg vs c200 2000kg
Can the new menteri answer this question?
I own a 2004 2.0 litre Camry.It will be 19 years old come 2023.I m bottom of M40 category,retiree.I bought it 5 years ago,less than 35K.,not brand new.
R u going to deny me fuel subsidy based on 2000 cc old junk(but still good condition),but give fuel subsidy to an owner of 1.5 turbo Honda Accord which is above 100K in resale value?There r many pak chik in the kampongs with 15-20 year old Accords ,BMW or Accords.
With the JPJ data base, gomen should deny fuel subsidies to cars 2 litre or 1.5 turbo that r still new( 100-200K in resale value).People who can afford 100 grand cars ,can afford higher fuel prices..not retirees with 18-20 year old 2 litre cars.
I hope the new menteri use common sense and not breathe dragon fire on the poor rakyat who just come out of covidian lockdowns.
Like this,I better sell off my 20 year old BMW,and buy a used Myvi.Or is the new gomen gonna penalise me for selling my BMW one day before the new ruling comes into being?
so the rich is funding the poor and incentivizing them to become poor so they get to enjoy said benefits? Wake up please. If based on car CC i’ll just buy a Myvii and pump full tank into my car then siphon all the fuel into my BMW 740i. Or we may even get black market service where poor people sell fuel to richer folks for a service fee.
Sinkie folks contact me when you’re in JB. My rates are SGD1.50 or RM4.50 per litre
I am curious how this actually works. More foolproof method needed to ensure that B40 really benefits from subsidy.
It is not right to said fuel subsidy should not go to rich people. Bear in mind rich people paying the most tax. Why should rich people pay more tax and so government feed the poor one. There are lots of T20 aren’t entrepreneurs, they can be employees who work hard and in return get reasonable pay. They also paying high income tax. They driving a 2.0L or 2.5L and the car was heavily taxed compare to Myvi or Saga.
I don’t know how the fuel subsidy mechanism work but in real government should encourage B20 to take public transport instead of subsidise fuel to encourage them to drive. Owning a car is more costly than taking public transport. A person who earn RM 2000, getting a Myvi 1.5 monthly instalment 600, fuel 200, toll and parking 100, maintenance 100 (insurance, service and tyre). Total up is RM 1k gone for a Myvi and the person left only RM 1k for his own. If taking public transport the expense won’t more than RM 200 per month.
If government said no fuel subsidy to 2.0L car and above then please return the excise duty tax or reduce the income tax rate of rich people. Rich people no shortchanged to poor people and no obligation to feed the B40.
Mesia tax system is ROBINHOOD
Exactly, B40 should just take public transport and stop buying cars and complain. Who the heck use 50% of the salary to feed a car and ask for subsidize ? U know the answer
Pocket kosong, muka ada
Before married: Kalau takde kete jenama H bakal mak mertua tak bagi meminang anak pompuan dia. Apa bulih buat bawah pun gatal. Amik loan beli kete la
After married: Abangggg….jiran sebelah dah beli kete baru…kita bila ek?
Once upon a time we got that trade-off, which is higher car prices in place of subsidy of cheap fuel. The rich duly pay their taxes.
Now we shall be penalized by the new government on the basis that the T20 rich gobbled up more of the subsidies than the B40 poor can even afford to use in the first place.
Pity the M40.
Can i just buy a used kancil, replace back seats with a huge fuel tank, rear window tint, and stronger rear suspension and feed the fuel to another more expensive car. Unless jpj can track other cars we own lah haha
Bulih bah kalau kau
Ssshhhh… Don’t tell them.
Maybe the government can take like 1.8 below entitle 200L fuel subsidy and 2.0L and above is 100L subsidy a month and based on carplate. Many T20 will find it unbalance when the fuel subsidy remove completely or only benefit to B40 and M40.
I’m a millionaire from lottery winnings and I still ride my beaten up ex5 dressed in pagoda singlet, shorts and selipar jepun to warung kopi for my daily teh & mengumpat sessions. Unsubsidized ron97 for my old girl is overkill, innit?
Keep bullying T20s eventually they will all leave. Left M40 to pay taxes which eventually they also leave.. Hahahaha
Subsidies for common people kena tarik but subsidies (incenties) for helangs no one dare to say anything.
Kalau harga petrol terlalu mahal, kuangkan minum petrol
Ada contoh negara yg ada petrol subsidi dan buat targeted? Rasanya macam tiada.. sebab tak praktikal. Adakah orang yang ‘tak layak’ tidak menyumbang kepada pendapatan negara?
Hello dear govt,
Excise duty tax, import tax, road tax. T20 already have to deal with this if anyone wants to buy a nice car (not a necessity but a luxury). You already price in the tax burden for rich people already.
On top of that your tax brackets increase massively as reported income goes up. Not enough money? go find out why LHDN isn’t making more money, M40 bracket alone probably pays more taxes than twice the B40 bracket already, and havent even touch the T20 income tax brackets yet which is much higher.
If you remove subsidy benefit that all citizens are entitled to, and only give it to b40, while still maintaining high tax rates for high income people, then you only incentivize tax evasion.
It’s ok, later on T20 will just increase prices of their goods, end up still B40 suffer.
What do you mean it is okay? Be fair, make prices all cheaper including T20, besides B40 and M40 also needed to give cheaper prices. That’s not what you want
Come on, this new government can do better than this. The logic of using displacement to target subsidies is a thing of the past. Same as our JPJ road tax which is based on displacement.
Poor T20 / M40. You are targeted bull’s eye when it comes to taxes.
When giving subsidies using the money you contributed, you are not targeted.
Baik booking axia 1.0 mt sekarang, nanti 2nd price x50 sama dgn axia rm30k.
I am a retiree
I drive an old 1995 BMW 325i
I pay RM874 for road tax already, and now I have to pay more for RON 95? What’s the point paying high road tax? Then abolish the road tax or toll roads
I also have a 2001 Kelisa
I pay RM20 for road tax. Guess I’ll use the 325i on weekends
Use the kelisa to buy fuel for your 325i
Brilliant idea,dude,thanks.
I get my mechanic to install a “transfer fuel mechanism” for my son to transfer cheap petrol in his Myvi to my Mercedes S 280.
So,in a week..he has to visit the petrol kiosk 3 times to buy fuel for his Myvi,and 2 times to “siphon” cheap subsidised petrol to my thirsty mercedes junk.
Is this what this unity gomen wanting to see?How on earth did the Anwaristas came to use JPJ engine size data to dish out subsidies?
We voted for regime change,but Anwar gave us Rafizi n Crusader Sallahudin who r breathing dragon flames down our throat..suffocating us,who escaped Deltarian covid.Seems to be square one like the Zafrul dude.Anwar..u let rakyat down who brave floods ,to get 2 clowns not knowing our sufferings.meanwhile,u should replace all the menteri”s vellfires with x50 to save costs.
Those pak chik with 20 year old Accords,Camry,Merc,Bmw in the kampongs..in b40 now..got no fuel subsidies?
Yes. Later will bersepah that device on shopee. Yes2…
Just remove the subsidiary for all lah, if poor just don’t drive, bawa motor or take bus. Buat apa susah susah. Poorfag still wanna drive and can’t afford expensive fuel, what a joke
Before married: Bakal mak mertua tak bagi meminang anak pompuan dia kalau tak beli kete jenama H. Bawah gatal terpaksa la amik loan beli kete
After married: Abanggg…jiran sebelah dah beli kete baru…kita bila pulak ek?
The government should study the formulas adopted by other net oil exporting countries such as those in the Middle East and devise a formula to suit our local environment.
Our government want to be mat Salleh and refuse to be pak arab
Malaysia got too many cars on the road. Anytime festive, everywhere jam. Solve this problem first. Old 30yr old cars are still on the road.
What’s wrong giving fuel subsidies to all Malaysian? This “Targeted fuel subsidy” system will create another wave of inflation which burden all ppl in the end. Government should provide free education to poor if they really want to help.
Be more objective, subsidy given to those own vehicle is not enough. The intention is to remove or reduce fuel subsidy for Petrol and Diesel which will affects good prices, most things require transportation, this chain reaction will impact everyone including the poor people without any vehicle… This will create another issue, govt should think again and may not just look at subsidy based on vehicle.. Obviously if based on engine capacity is a joke, it reflects how competent the persons who proposed this…
Please go back to the drawing board again to find a new solution.
Don’t have subsidies. Just allow market pricing for the fuel and diesel. Send subsidies through the current mechanism of cash payments / coupons for those that qualify. Guaranteed the T20 will not use the coupons to pay for their fuel at the counter. This is just my 2 cents ya. Don’t shoot me for sharing.
Malaysia needs to be more market centered. Be fair and let’s make Malaysia great! All Malaysians can be successful not only for those with strong connections.
The problem is the real rich do not have income declaration… Still enjoying subsidy.
Actually, gomen also no idea how to solve this. Just give to all malaysian certain amount of subsidy fuel. If you use more than that, you need to pay more. For example 50 liter per week per person. Then everyone happy about that.
Or maybe no subsidy to all, then all automotive industry can gulung tikar next year. Or maybe they need to cut cost their public sector servant and total minister.
Less spending on operation, focus more on total keperluan rakyat. So all m40 and t20 tax payer will happy to pay more tax as their also get benefit from that. Lol
What benefit we get from subsidizing B40? More illegally modified bikes with loud exhaust on the roads?
“will be among the resources used by the Malaysian government…”
read full article laa…
This is to promote more electric cars on the road and gradually increase the price at charging points. Why are they not thinking about scrapping the 15 year old cars? that itself will change the face of automobile industry.
Get ready for black-market patrol.
how many $ is taxed from people buying expensive cars? take that all away and T20 will happily pay for unsubsidized fuel. I am a T20 and that is something I support. Why pay 240k for a new bmw when I can get one for 140k. T20 pays high taxes plus high excise duties and now you want us to pay MORE?
Of course! B40 income how much only? Can’t expect them to pay more taxes.
Fuel Subsidy should be based on the price of the vehicle.
50k and below
51k-100k
101k-200k
201k and above
Problem is, how petrol station know which car price is?
C’mon make use of the available technology, its so simple and the most effective way. The target group, let’s say the b40, ask them to download tng wallet. Those who own cars give them say 300 litres of subsidised petrol while bikers, say 100 litres monthly. The price of Ron 95 let’s say is then increase to rm2.50, therefore if the b40s pump 30 litres, payment made through tng will then be 30 X rm2.50 less 30 X 0.45 sen(subsidy p/l). Cap it monthly so there’s no abuse
I’m gonna be BFFs with B40s now. I’ll let the B40s earn RM0.20 per litre of their unused quota.
what’s wrong with current subsidies. what’s wrong with subsidies also benefited the rich. After all they are paying more tax then the less rich. To begin with, they already buy expensive imported car with heavy tax and expensive road tax. Government should look elsewhere to find or save money. There are many lopsided concessionaires agreement like IPP and many more that need to be revoke… After all removal petrol subsidies will affect many other good prices. Government should have proper overall plan before amending the petrol subsidies. among other improving public transportation so people can choose not to drive.
Anwar want to reduce cost is subsidi, normal tactic for politician especially they want to forced people to use EV
Is the govt encouraging people to become B40??? Really takde otak this govt. No wonder all the talents have migrated. M40 and T20 paid most of the taxes and they are supporting the govt ministers pay who are too lazy to think for the country. The T20 paid the most taxes and there are reasons because they work hard and resourceful. Do you know many super rich especially politicians did not declare their income or declare themselves as B40? Settle this leakage first before you talk about subsidies!!!
Get your priority right and address the cost of living first. You think reducing subsidy can reduce cost of living??? The immediate effect will be hyper inflation like Abdullah Badawi’s time when he was the PM (price increased from RM2.05 to RM2.70 per litre)
Many B40 and M40 aren’t real B40 or M40 They are businessowners who don’t declare tax and in fact many are earning well from business. Are they being taxed accordingly. As T20 we also being forced to subsidize others who are not really poor. The sad thing is most the T20 are professional who are forced to pay high tax and nothing we benefit from the tax that we pay. This government is as equally non competent in addressing the real issues. Based on engine capacity is already clearly shows their competency. BMW i8 is only 1.0 man for government FYI.
Many B40 and M40 aren’t real B40 or M40 They are businessowners who don’t declare tax and in fact many are earning well from business. Are they being taxed accordingly. As T20 we also being forced to subsidize others who are not really poor. The sad thing is most the T20 are professional who are forced to pay high tax and nothing we benefit from the tax that we pay. This government is as equally non competent in addressing the real issues. Based on engine capacity is already clearly shows their competency. BMW i8 is only 1.0 man. FYI unity government.
i do think removing subsidy for transportation industry is good. no doubt there will be hard hit inflation on food as most food are transported by logistic industry. but then.. i am sure the market will find a way always.