Should owners of more expensive cars be ineligible for the targeted RON 95 fuel subsidy programme? MCA president Wee Ka Siong thinks so and has called on the government to consider the eligibility for the subsidy to be based on the type and value of cars driven instead of an individual’s income.
Wee said drivers of vehicles such as the Perodua Myvi, Ativa and Alza should be entitled to receive a full government subsidy for RON 95 petrol. “However, those who drive a Mercedes-Benz, BMW, Ferrari or Lamborghini do not need the subsidy at all,” he said in a video posted on TikTok, as reported by FMT.
He added that those who are part of the M40 income group but prefer to drive luxury cars should also not be given any fuel subsidy. Wee went on to say the government should not punish those who practise moderation in their daily lives and are not reckless with their spending.
During the tabling of Budget 2025, it was announced that the government will restructure the RON 95 petrol subsidy in mid-2025. Soon after the announcement, it was revealed that a two-tier RON95 petrol pricing system based on net income would be introduced, with the T15 (a new term that means the top 15% earners) being ineligible for the subsidy – just how much you need to earn to fall into this category is still not finalised.
What are your thoughts on the matter? Should RON 95 fuel subsidies be provided based on income or the type of vehicle? Share them with us in the comments below.
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Follow the MCA president's proposal.
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AI-generated Summary ✨
Many comments agree that aligning petrol subsidies with car type or valuation is more effective than income-based schemes. Suggestions include basing subsidies on car price, age, and engine capacity, with some advocating for a fixed subsidy for affordable local brands while luxury and foreign cars pay full price. Several commenters emphasize the potential loopholes and enforcement challenges of income-based systems, proposing simpler methods like flat subsidies or calculating based on emission levels. A few express skepticism about subsidizing luxury vehicles, arguing that high-income individuals already pay hefty taxes and should not benefit from subsidies. Overall, there is support for targeting subsidies based on vehicle characteristics to promote fairness, reduce abuse, and encourage local production and eco-friendly vehicles.