The government has announced that it will restructure the RON 95 petrol subsidy in mid-2025, with a switch to a targeted subsidy. This was revealed by prime minister Datuk Seri Anwar Ibrahim during his tabling of Budget 2025.
He said that at present, the country spends RM20 billion a year in petrol subsidies to maintain the pump price of RON 95 at a capped RM2.05 per litre, and streamlining this to a targeted subsidy would save the government RM8 billion.
The PM said this amount, which accounts for 40% of the total petrol subsidy, was what was being “enjoyed by foreigners and the top 15% of super-rich consumers.” He stated that this money would be better utilised for the improvement of educational facilities, health as well public transportation.
Anwar added the government remains committed to maintaining subsidies for the majority of the people, which means that 85% of RON 95 users will not be affected. He said the government would “continue to bear subsidies estimated at RM12 billion for the needs of these 85%.”
No details on how the petrol subsidy rationalisation would be implemented, so it remains to be seen what form the mechanism will take, ahd whether it will be gradual (unlikely). Presently, unsubsidised RON 95 is priced at RM2.76 per litre (October 18).
Because it has a significantly larger user base, the route for RON 95 petrol is unlikely to follow that adopted for diesel, where pump prices are set to full market price, with those eligible for subsidies getting RM200 credited to their bank account monthly. The threshold for diesel subsidy is an annual income of RM100,000, so this could be higher for petrol because of the top 15% mention. Expect more info to trickle in over the following months.
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Salam Madani,
Since top 15% earners (T15) will pay more for fuel, just curious whether they will get to pay less for their income tax.
This is a very smart and fair move for all rakyat. See you in next GE. Hehe.
they are rewarded with extra 2% of dividend tax, didnt you read???
OK la tu sikit jer
Kalo berbanding dgn interest
100K loan = 2,500 tahunan tau?
One form or another. Someone has to pay. At least GST will not be reintroduced until minimum wages more than 3K
https://www.thestar.com.my/news/nation/2024/10/14/anwar-gst-again-only-after-incomes-rise
By right, everyone should get the same amount of subsidy, upto certain liter. Once breached, the person should be charged the full amount. Not fair for the T15 to pay more since they already pay more income tax than others. What about those doing freelance and commision that never declare their income tax. They probably earn more than the lower T15.
Clearly, he’s doing this for optics & political mileage. He wants to be seen as a Robinhood championing the poor aka voter meleis
Why? It is time to tax for T15, and other 85%
True. Why should we spend more on luxury vehicles, and we don’t need so much of vehicles, as already too many cars on the road and traffic is everywhere
And add more words from “other 85%”, other 85% will not tax and not removed subsidy
Hope the gov rise the fuel price at least 50 cents for all tiers. Meanwhile those super rich maybe rise up to RM 1, still subsidy but little as courtesy for rich family. It is completely not logic to remain RON95 at RM 2.05 where Saudi Arabia produce more fuel than Msia but they sell high price of RON 95 than us to their citizen.
if increase by rm1 like what you said, the price will be rm3.05 against current unsubsidised price of rm2.76.
Wow, tax non stop to the rich
You are talking as if Malaysia citizen are good earner
By June 2025..market price of petrol could be around Rm4 to 5 per litre,if Israel started to attack Iran,by bombing military targets first.Like Ukraine,they will target energy infra and oil fields when tit for tat spiral out of control.
I wonder how many juta rakyat can tahan Rm5 per litre if they receive a targeted allowance of say Rm200 to300 monthly.
It is easier said than done.Rafizi ,as usual will come out of his spider hole and give his “surprise”.
PMX,u want to cut subsidies but seemingly keep overspending..our national debt is hovering 1.5 trillion n above soon.Perhaps a one term PM like Biden is a tradeoff.
One form or another. Someone has to pay. At least GST will not be reintroduced until minimum wages more than 3K
https://www.thestar.com.my/news/nation/2024/10/14/anwar-gst-again-only-after-incomes-rise
Please bear in mind, the Super Rich pays most of the Personal Tax as well as Corporate Tax. U imagine, u paid for Presidential Suites prices and u enjoy the room, end up u need to clean your own room after the stayed.
Malaysia is full of subsidies, especially allocated for those low production groups. If still can’t wake up, the country will be overtaken by regional counties.
One day, the Super Rich will just over the night, get a PR of a country and transferred his total wealth overseas. Who lost then?
Meanwhile 85% will be giving up their freedom and get controlled by the government just to continue enjoying their subsidised petrol.
This is akin to social credit score.
I’m a top salesman & my commission can reach 30k a month. My company pays for my petrol. Looks like my boss will increase the price of rice & flour to cover my pricier petrol. TQ PMX!
15% of the population using 40% of the fuel? You better have this correct else your formula to auro credit 200 to the other 85% will make u a lot poorer. I’m buying popcorns..and going for extra large
In this world, only Malaysian, as an Exporter/Producer of Petroleum, her people can’t afford Petrol but can afford to own a car.
Ridiculous?
Or there’s no man with guts dare to correct the mistake, whereby the country spent 20 BIllion, which is about 5% of her Development Budget, just to subsidise those Foreigners & Smugglers, which I believe majority of the subsidies were spent on these 2 groups.
Baguslah ,siapa suruh kerja rajin2 sampai kaya raya. Cukup maka pakai sudah ,tongkat pun dapat ,masa bersama falali pun banyak.
Taking out subsidy because you’re in the t15 category is hilarious. Why not reduce 60% of government servants since you all using computer for everything. Enhance the intake requirement at the government department. Rather you build a small economic in the area where b40 gathered in order to let them survived. Raising or implement more tax doesn’t make your country grow, if it does, every country already doing well and no one needs to print more money.
The bloated numbers of govt salaries and pensions are time-bomb. With most budget gone to this category and increasing every year.
Need to define KPI and review performance. Transfer to new/different departments to better use “under-utilized” headcounts. Else VSS
Dude, for years till now, still helping rich but not the poor, as you need to understand. That’s why the government want to reverse by taxing T15 but not 85% of the people to make things fair for everyone by helping poor and middle
Isn’t the government having more and more people ? Instead of only taxing t15, they should reduce the department workers and even those high ranking have an income of t15 ( I don’t even know how they earn ) .
“…that this money would be better utilised for the improvement of educational facilities, health as well public transportation.”
Year in year out, whichever gov, always say the same thing. In the end, do you see any improvment to any of these?
Then maha kaya just keep asking his driver to use his MyKad to pay for petrol. Or how about maha kaya ask his housewife to pay instead? Or his college-going kids? Or his mom who stays with him? While the majority (read: lower income earners) continue to subsidise them and suffer.
This gives more incentive to children not to leave school.
PMX don’t try to bite the hands that put him there else next term, he and his parties will be out in the cold. We can keep quiet but that doesn’t mean that we don’t react.
Foreigners are also the biggest net contributors. They enjoy no benefit whatsoever an pay full tax. This is just decreasing the country attractivity and pushing a populist message.
Taxation should only happen in one place and everybody should be equal regarding the other benefits. This makes for a clean system not fully dominated by bureacrats.
In all fairness the price of petrol should be not subsidized but taxed in order to develop and encourage public transports which are very limited.
Less cars on the road, smaller engines, eco-driving behavior is the way to go.
What about foreigners There millions here enjoying our subsidy like cooking oil n etc How can we stop them.They r not paying tax n send all their money home.We instead cannot benefic frm the subsidy.Do something to eradicate poverty just like china do in just 2 decades.There is too many loop holes that subsidy r misused n there is others way they can through backdoor to enjoy n get subsidy items also