Targeted subsidies for petrol and diesel in Malaysia likely to be implemented in 2024 using 3 mechanisms

Targeted subsidies for petrol and diesel in Malaysia likely to be implemented in 2024 using 3 mechanisms

According to economy minister Rafizi Ramli, targeted subsidies for petrol and diesel are likely to be implemented in 2024 using three mechanisms. As reported by The Star, Rafizi was responding to a question posted to him in the Dewan Rakyat on the engagement with stakeholders on targeted subsidies in 2024 and the type of targeted subsidies to be implemented.

The first mechanism will be based on individual net disposable income, which is the amount left over after taxes. Meanwhile, the second mechanism will be based on net disposable household income through social protection or assistance schemes.

The third mechanism will be a combination of household and individual earnings, which will be implemented using a subsidies card. Rafizi pointed out that the targeted subsidies programme is expected to be implemented after the Pangkalan Data Utama (PADU) system is rolled out in January next year.

“Besides the form and mechanism of targeted subsidies, the Cabinet will decide on implementation and follow-up plans. These include communication, engagement and support plans to alleviate the burden of the people which will be coordinated by the entire government machinery,” he said.

The target subsidies programme will only involve Peninsular Malaysia, as revealed by prime minister Datuk Seri Anwar Ibrahim at the start of this month, who added that diesel subsidies will be carried out in phases. Anwar, who is also finance minister, said diesel subsidies would not involve Sabah and Sarawak due to the extensive use of diesel in these states.

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Comments

  • Sohai on Nov 07, 2023 at 11:06 am

    Continuous subsidy removal and higher taxes for the T20 will only encourage more people to find ways to evade tax. Govt fail to understand that majority of T20 are not super rich, it’s just our classification due to overall low income of the country’s population. Everyone should have a role in paying their taxes. Bring back GST where you’re taxed based on how much you buy/consume. The rich will spend more and pay more taxes this way.

    Well-loved. Like or Dislike: Thumb up 246 Thumb down 7
    • Niama on Nov 07, 2023 at 11:48 am

      Those target subsidy mechanism are unproven… likely to fail and distort the market further. At least gst has a proven track record

      Well-loved. Like or Dislike: Thumb up 101 Thumb down 4
      • Worried PN sapoter on Nov 07, 2023 at 12:27 pm

        Cuba la dulu. At least better then those brainless cult voted PN 33bulan gajibuta.. lol

        Like or Dislike: Thumb up 36 Thumb down 58
        • Dah Menang Semua on Nov 07, 2023 at 9:59 pm

          Targeted subsidy skrg
          GST akan datang nanti
          Mark my word

          Like or Dislike: Thumb up 23 Thumb down 2
          • Sohai on Nov 08, 2023 at 4:46 pm

            Looks like got cloned sohai from the original, nvm… The petroleum & gasoline is sustainable energy should be preserved and should floating as per market price. The vehicle Sales Tax should be reduced to balance up the increase of gasoline and transparent & CKD/CBU tax no problem to remained. Excise duty & AP should be eliminated.

            Like or Dislike: Thumb up 14 Thumb down 2
        • PEMBOHONG ini
          cakap hari ini jadi PM besok harga petrol turun,apa sudah jadi.Pembohong

          Like or Dislike: Thumb up 17 Thumb down 2
      • Bossku....anwarkor on Nov 07, 2023 at 1:25 pm

        Once Iran n Hezbollah join the Gaza war…oil at US 130 a barrel….Rafizi n co have to U turn.Petrol subsidies is like controlled hypertension.Once U deny the medication ,within 3 weeks U due of organ failure.Rakyat will kaput economically once U float the petrol price.

        Like or Dislike: Thumb up 31 Thumb down 5
    • Dong Gor on Nov 07, 2023 at 12:09 pm

      very well said. your name doesn’t represent what you speak actually. 100% support you!!! hope the gaji buta ministers can understand some of this basic things that you have just pointed out.

      Like or Dislike: Thumb up 31 Thumb down 1
    • Tax accountant on Nov 07, 2023 at 2:05 pm

      You can start paying all your salaries and incomes into bank accounts opened in tax havens. Then just repatriate enough ringgit back for you expenses here. You’ll still pay for SST, luxury taxes and whatnots but you won’t be paying income tax

      Like or Dislike: Thumb up 12 Thumb down 1
    • The rich on Nov 07, 2023 at 2:20 pm

      No issue. We can buy luxury goods abroad and claim tax refunds

      Like or Dislike: Thumb up 10 Thumb down 0
    • all sohai on Nov 07, 2023 at 3:03 pm

      These so hai will find way to evade taxes regardless of tax rates anyway, shitty excuse.

      Like or Dislike: Thumb up 12 Thumb down 0
    • Private Lapuk on Nov 08, 2023 at 12:41 am

      Only Malaysia reject GST..how stupid the care taker of the rejected GST…

      Like or Dislike: Thumb up 12 Thumb down 1
      • Shaggy on Nov 09, 2023 at 11:43 am

        Very true indeed .. they wanted the vote of the business communities (most who are culprits of tax evasion) .. and make the gooooood decision to abolish GST ..

        Like or Dislike: Thumb up 1 Thumb down 1
    • You think PH will admit they lie to Rakyat to grab power and eat back their own spit? Change back to GST is a death spell to PH.

      Like or Dislike: Thumb up 6 Thumb down 0
  • petrolhead on Nov 07, 2023 at 11:30 am

    targeted subsidies for diesel will not be implemented in sabah and sarawak due to its extensive usage. how can the government cut down on subsidies when they don’t intend to cut where it matters most (read extensive). using the same analogy, can we in west malaysia continue to enjoy our petrol subsidies then due to our extensive usage???

    Well-loved. Like or Dislike: Thumb up 66 Thumb down 1
    • You have a point. Answer that PMX! on Nov 07, 2023 at 12:41 pm

      Dieselbutt

      Like or Dislike: Thumb up 11 Thumb down 12
    • Yeah totally agree..double standard!so the peninsular citizens suppose to get subsidy for petrol due to our highly usage of it..and vice versa..

      Like or Dislike: Thumb up 21 Thumb down 2
  • Kea Was on Nov 07, 2023 at 11:42 am

    So based on the logic petrol subsidy will not involve Peninsular Malaysia due to the extensive usage of it here (Yay so guess Indonesia will continue to enjoy our special diesel shared with them)?

    But hey who are we kidding all trying to make a name for themselves for support however none of them support when come to power.

    Like or Dislike: Thumb up 26 Thumb down 1
  • Sounds like “robbing Peter to pay Paul”. Peter run away and Paul still don’t want to be your friend. In the end, you are left with nothing.

    Like or Dislike: Thumb up 23 Thumb down 13
    • Pizi pormula on Nov 07, 2023 at 1:39 pm

      Left with pencacai2 PH

      Like or Dislike: Thumb up 11 Thumb down 13
      • pencacai PN on Nov 08, 2023 at 1:03 am

        Last year abah also agree that the government can save RM20bil a year by implementing the targeted subsidy scheme. He said that, at the moment, only 20% of the subsidy provided by the government was taken up by the B40 group, while the rest was enjoyed by groups which did not deserve it, and almost 50% of government subsidies are used by people in the well-to-do category. Therefore, he thinks that the basis for the government to decide on targeted subsidy scheme is very strong for a higher percentage to reach the B40 target group.

        Like or Dislike: Thumb up 7 Thumb down 2
  • So many mechanism, later raja formula pun pening. I know people will hate if i say this, but let the petrol price float and improve public transport structure. Japan, HK, Singapore are more relying into public transport because it’s better, faster and cheaper for daily commute to work. If the govt come out with the so called mechanism, I believe many will complain on why they are not entitled. Let the price float, then don’t need to worry Singapore or Thailand stealing fuel. Settle.

    Like or Dislike: Thumb up 40 Thumb down 3
    • dong gor on Nov 07, 2023 at 12:15 pm

      float is ok, then you also have to remove the ridiculous excise duty and all for cars. cheap or expensive cars, you implement 6% GST across all…expensive will pay more in terms of dollar right.you can’t just keep robbing the ppl like this…further more, malaysia has petroleum. you are just sharing the natural resources with the ppl, not really a ‘subsidy’ if you look at it from that angle

      Like or Dislike: Thumb up 39 Thumb down 2
      • This is beyond logic on Nov 07, 2023 at 1:00 pm

        For as long as there is subsidy for certain segment of the community, it will be exploited. Just implement policies across board and stop giving ridiculous statement to justify garbage policies. There are many rich tycoons in Sabah and Sarawak that lives in luxury mansions and own acres upon acres of land. How can people living as M40 in Peninsula be paying taxes to subsidize rich tycoons’ petrol and diesel! This is not correct. Extensive usage there means exploitation and selling of smuggled diesel through boats and other means.

        Please just implement back GST, float the price of petrol and diesel, and remove the excise, import and sales tax of cars. Let the car market in Malaysia be competitive and follow the footsteps of successful nations. Targeted subsidies breeds and reeks of discrimination, unfair policies and will lead to society choosing to be dependent on government aid. What is the point I go to work and pay taxes anymore, rather I just sit at home, relax and enjoy subsidies. Malaysia is heading to become a failed state.

        Well-loved. Like or Dislike: Thumb up 55 Thumb down 1
        • Earth prince on Nov 07, 2023 at 2:00 pm

          Yes we don’t wanna fish. We are waiting for gomen to feed us everyday

          Like or Dislike: Thumb up 11 Thumb down 1
        • Golongan terlindung on Nov 07, 2023 at 2:16 pm

          Kalau ikut lojik & kuman sense kami dah lama lenyap dah….tu pasal kena ada hak istimewa

          Like or Dislike: Thumb up 6 Thumb down 5
  • Sick&Tired on Nov 07, 2023 at 12:24 pm

    What about car tax!? We have one of the highest car taxes in the world! To make it worse, we also paying interest on the tax when we take bank loan! Is that fair!? If the government cannot afford to subsidize petrol, we the people cannot afford to subsidize the government by paying high car taxes! All politicians are the same! Only know how to make promises!

    Like or Dislike: Thumb up 31 Thumb down 2
    • Healthy & energetic on Nov 07, 2023 at 2:33 pm

      Try duk kat Singapore 5 tahun tengok kau komplen lagi tak

      Like or Dislike: Thumb up 8 Thumb down 15
      • Energetic and healthy on Nov 07, 2023 at 7:21 pm

        Generally Singaporeans have higher standard of living compared to Malaysians. For example, normal teen can work few months and save up to go Europe holiday. Malaysian? Kerja 10 tahun pun tak jadi bang.

        Like or Dislike: Thumb up 25 Thumb down 3
      • Sick&Tired on Nov 09, 2023 at 7:34 am

        At least Singapore can justify their high taxes because of their land mass! How can our government justify our high car taxes!? Proton has already been sold to geely so who are we protecting!?

        And I would love to move to Singapore of I have the option! At least I can go to Johor and spend my money like a king (3.4 at the time I am writing this!). I believe the dignity of a country is measured by the value of it’s currency

        Like or Dislike: Thumb up 2 Thumb down 0
  • Tak habis2 golongan terlindung ni on Nov 07, 2023 at 12:45 pm

    Kaut poket T20 suap mulut B40

    Like or Dislike: Thumb up 12 Thumb down 8
  • Penisular pipur = GG

    Like or Dislike: Thumb up 4 Thumb down 0
  • Ben Yap on Nov 07, 2023 at 1:44 pm

    i’m waiting for the next GE to vote for a change in government.

    Like or Dislike: Thumb up 29 Thumb down 2
    • Not gonna matter on Nov 07, 2023 at 2:39 pm

      UMNO, PKR, PAS, Bersatu all the same. The same species of people with the same agenda

      Like or Dislike: Thumb up 23 Thumb down 14
    • Stupid on Nov 08, 2023 at 9:03 am

      who are u gonna vote? PAS BERSATU? haha like that better dont vote.

      Like or Dislike: Thumb up 8 Thumb down 3
      • I Miss BN 60 Years Rule on Nov 08, 2023 at 5:30 pm

        If BN back under Najib cannot, PN is still the better option.

        Like or Dislike: Thumb up 2 Thumb down 4
        • Rosie on Nov 08, 2023 at 6:28 pm

          Don’t be like that lah.. I still got some more things to advise my darling when he’s back..

          Like or Dislike: Thumb up 0 Thumb down 0
  • Suityourface on Nov 07, 2023 at 2:45 pm

    Esok kita (Pee H) menangggg, esok harga minyak turunnn!!! Kah kah kah. Padan muka korang percaya janji2 bohong Pee H.

    Like or Dislike: Thumb up 26 Thumb down 31
    • U still a cry baby? on Nov 07, 2023 at 3:40 pm

      Explanation already publicly given. But if u still can’t accept it, u shld grow a pair & ask face to face.

      Like or Dislike: Thumb up 29 Thumb down 11
    • Saya ulangg.... on Nov 07, 2023 at 9:53 pm

      Kau pun sama padan muka. Sama2 semua rakyat semenanjung merasa kehancingan PH.

      Like or Dislike: Thumb up 4 Thumb down 10
      • Itu engkau sendiri punya hal on Nov 08, 2023 at 11:48 am

        Kalau engkau yang rasa, itu engkau sendiri punya hal.

        Like or Dislike: Thumb up 9 Thumb down 0
      • siaran ulangan? on Nov 08, 2023 at 6:19 pm

        cerita dah basi

        Like or Dislike: Thumb up 7 Thumb down 0
      • Bila engkau nak jadi dewasa? on Nov 08, 2023 at 6:39 pm

        Kau masih bersikap macam budak kecik yg tak tahu menghadapi segala cabaran hidup kerana terlalu bergantung kpd pihak lain.

        Like or Dislike: Thumb up 5 Thumb down 0
        • Munafik much? on Nov 08, 2023 at 9:36 pm

          Jgn berjanji kalo x blh nk kotakan. Alangkah indah jika org mungkir janji ni trus meletop otak or meninggal trus atas kifarah trsebut.

          Like or Dislike: Thumb up 0 Thumb down 7
          • mmg kau betul2 perangai kebudak-budakan on Nov 09, 2023 at 1:21 pm

            dorang pun dah bagi penjelasan di khalayak org ramai. kalau kau betul2 pandai nak ajar org, kau patut juga bersemuka dgn dorang depan org ramai. kalau tidak, mmg kau betul2 perangai kebudak-budakan.

            paultan.org/2023/10/05/pm-anwar-ibrahim-reiterates-why-petrol-cannot-be-rm1-50-per-litre-billions-already-spent-on-subsidies/

            Like or Dislike: Thumb up 5 Thumb down 0
  • How about Grab driver

    Like or Dislike: Thumb up 0 Thumb down 0
  • They must have crystal balls on Nov 07, 2023 at 3:46 pm

    There must be a good number of PT readers who seem able to predict complaints for something that hasn’t started yet. They must be clairvoyant.

    Like or Dislike: Thumb up 11 Thumb down 4
  • Ben Yap on Nov 07, 2023 at 4:26 pm

    don’t worry, robbing the rich to give to the poor will not last long. once the rich gets fed up, they will vote out this current government which is only 1 term government.

    Like or Dislike: Thumb up 16 Thumb down 1
  • T2 not happy on Nov 07, 2023 at 7:57 pm

    T20s and businesses probably pay the most taxes. B40 is contributing absolutely nothing in taxes and is only providing cheap labor to the M40s + T20s. Instead of constantly feeding the B40 with subsidies and no tax. Why not charge them their fair share of taxes, give less subsidy and use the savings to upskill everyone so that they have more value.

    Every dollar spent in education should bring back more in the future than what we spend today.

    Like or Dislike: Thumb up 21 Thumb down 3
    • Gomen on Nov 07, 2023 at 9:41 pm

      Too risky. Biggest voter base. Can’t afford to offend them. They’ll mogok in front sogo. Anyway they no time to study. Any free time used to sniff glue, drink ketum, take drugs and breed excessively

      Like or Dislike: Thumb up 8 Thumb down 2
  • M40 + T20 pay more to help B40, Pui

    Like or Dislike: Thumb up 5 Thumb down 0
  • PH voter on Nov 07, 2023 at 9:57 pm

    Pakatan Harapan… I remember some DAP MP said if Harapan wins, Singaporeans will come to Malaysia for jobs..

    Like or Dislike: Thumb up 7 Thumb down 0
  • Pusing Pening! on Nov 07, 2023 at 10:09 pm

    So much fuss just to save few billions, float the petrol price like chicken and eggs…la let the petrol stations all compete for customer let the market determine the prices this way we can save more and distribute the savings as CASH to the rakyat better.

    Like or Dislike: Thumb up 3 Thumb down 1
  • Albert Khoo on Nov 07, 2023 at 11:25 pm

    We are already paying higher taxes. Why do you want to further burden us by implementing all these targeted taxes? I think this is the first country in the world to have this type of scheme. You think it will work? If you continue to give benefit to B40, will they want to alleviate or excel higher than B40 when they are enjoying all the benefits? This is like hands out. This is ridiculous.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Concern on Nov 07, 2023 at 11:44 pm

    Targetted subsidy can be implemented if and only if the whole Malaysia goes cashless. Any shop/stalls can declare B40 as long as their income is not captured digitally.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Andrew on Nov 08, 2023 at 9:01 am

    Need to sell Kia forte 1.6

    Like or Dislike: Thumb up 0 Thumb down 0
  • drebar on Nov 08, 2023 at 10:13 am

    not that if your HOUSEHOLD makes more than 9k per month, you are M40
    If your HOUSEHOLD makes more than 16k a month, you are T20.
    this is the income of you + your spouse (+ maybe your children if their address is the same).
    so if husband makes 6k, wife make 3.5k, you will not get fuel subsidy? ok, at least if you remove the car taxes, you can save a lot when buying a car. note that proton and perodua jack up their prices because they have no competition due to the protection by those taxes. rakyat is getting cheated

    Like or Dislike: Thumb up 13 Thumb down 0
  • Jules on Nov 08, 2023 at 1:23 pm

    My economical diesel powered truck will cost more because I am a foreigner and therefore excluded from subsidies, even though I pay my taxes.
    What could be more unfair? Racial skin color politics rule in Malaysia.

    Like or Dislike: Thumb up 5 Thumb down 0
  • What seven on Nov 08, 2023 at 3:56 pm

    Stop all subsidies n scrap all vehicles above 20yrs n we don’t need anymore new highways. Save lots of money

    Like or Dislike: Thumb up 1 Thumb down 2
  • SaynoTan on Nov 09, 2023 at 7:22 am

    You think PH will admit they lie to Rakyat to grab power and eat back their own spit? Change back to GST is a death spell to PH.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Worries on Nov 09, 2023 at 7:52 pm

    Government should include the mechanism to let Malaysians enjoy the subsidies.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Idiot on Nov 10, 2023 at 10:34 am

    T20, M40, B40 classification also all wrong, wanna implement subsidy cut, stupid. The classification should be calculated as how much u have left after deducting all ur expenses not ur monthly income. Some of us still need to take care of old aging parent and spouse not working. This will increase the monthly burden for the middle class. T20 should be categorize as, even if u don’t have any income, u still can survive without fear… WE Can’t!

    Like or Dislike: Thumb up 0 Thumb down 0
 

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