The most significant news of the recent tabling of Budget 2025 has to be the impending end to blanket subsidies for RON 95 petrol, which will be replaced by a targeted version that will come into place from mid-2025.
Prime minister Datuk Seri Anwar Ibrahim said that the T15 (top 15% earners) and foreigners will soon have to pay market price for petrol, while 85% of the rakyat will continue to enjoy subsidised RON 95. Anwar, who is also finance minister, used maha kaya to describe the T15 in the budget.
As there was no elaboration on who exactly is T15, many searched and found stats that pointed to RM13,000 income as the point where a Malaysian household is classified as T15. For a working couple, that’s a salary of RM6,500 each – many were shocked that they could be the maha kaya who will have to pay market price for petrol.
Now, the PM says that the while the Department of Statistics Malaysia (DOSM) classifies household income of around RM13,000 as T15, this ‘may be too low’ and the government is still discussing who would be considered T15 before it lifts the blanket subsidy on RON 95.
“We are still evaluating what the quantum is because we feel that what was coined by DOSM which is around RM13,000 may be too low,” Anwar said during question time in parliament today, reported by Malay Mail. He also denied that the there are many definitions of T15, saying that the current threshold for the T15 income bracket is RM13,000 (he mentioned RM12k when addressing this topic previously, but close enough).
According to the MM report, Anwar expressed worry over the number of MPs questioning the removal of the petrol subsidy for the T15 income bracket, as well as a newly-announced 2% dividend tax.
“If we defend the T15, they’ll get everything. Is it reasonable for the government to continue giving subsidies to non-citizens and the high-income group, including the ultra-rich?” he pushed back when responding to Kota Melaka MP Khoo Poay Tiong’s question.
This week, economy minister Rafizi Ramli reiterated that the definition of the T15 category is expected to take into account location and net disposable household income. The details, which is expected to be completed in a month, are now being finalised in collaboration with the finance ministry before being passed to the cabinet for approval.
“It (T15) will not be a simple line (of definition) for the entire country because expenses vary, and living standards differ by area. If we apply a blanket definition for the whole country, that’s where injustice occurs. Someone earning RM15,000 in Kuala Lumpur, which is in an expensive area, may not be considered as wealthy as someone earning RM15,000 in Gua Musang… so the determination (of T15) will likely be based on location,” the Pandan MP said.
Aside from where one resides, the T15 classification will also take into account net disposable income of a household, which will in turn look at the number of dependents ‘based on the basic cost of a decent living’. More on that here.
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Don’t blame DOSM la… PMX simply spit out words without thinking through and then blame DOSM. DOSM statistics is not wrong as it is based on the numbers they obtained. Choosing to tax T15 is from PMX and not from DOSM. Just admit that you aren’t doing a good job here.
15000 combined cannot pay 60 Sen more for a litre of petrol but can get Starbucks on a daily basis. We really need to get real here. The country need to be burdened by legacy, otherwise we will be further from reality as time goes. Though I would wish the list of subsidy goes to building the nation better and not to individual coffers.
Exactly..something big like the budget proposal, do some homework dulu. we know most of the time the top just goyang kaki, but what happened now is just too obvious. T15 is a category from the income. if you say T15 now need to go higher bracket, then it’s no longer T15, maybe T10 ..know the terms or not. T10 means u are removing subsidyt for 10% of the population..and are you sure this is enough to meet your targetted savings? one word, just bodoh to the max! and that is how our country gets to what it is today
Ben Yap
I was thinking of giving ahwahkor a second term at GE16.But with so many unpleasant events now and all the rubbish debate..your voting pattern will be same as mine,I believe.
As warga emas,we r fighting health problems,plus trying to ensure food on our table and be mortgage free.
Here,from Paultan’s forum alone…we see the true colors of our politicians.
Just bring back a pure BN gomen with UMNO, MCA & MIC in the lead and everything will back to normal again.
We should blame ourselves for voting an ex-con into power
T15 is RM13k monthly, that’s factual.
Question is why the government choose T15 to implement?
Off course you can choose RM20k-RM30k a month income as a cut off, but that will be like T5. You simply can’t choose a RM20k number and call it T15.
And when you choose T5, i.e. 5% of population, how much fuel subsidy savings are we talking about?
‘maha kaya’ damage control detected.
kebodohan, kebangangan dan kepandiran kerajaan tahap maksimum, PMX dan konco2nya tolong baca
oh susah jadi kerajaan madani ni, buat A salah, buat B salah. they just should remove all the terms B, T, M and give all people subsidy jela senang. fuel price all get 1.50, str all get 10k, then if our country debt getting higher biar jela. let gov after this take over and clean all the mess.
Actually, there is a solution to this. Just bring in cheap hybrid or EV tht below rm50k. Encourage ppl to change to EV by giving special trade in rebate and solar installation grant. After 80% of market use EV/Hybrid, then sell the fuel at market rate. Target 3 yrs to reach 80% of user and remove subsidy. So when all b40,m40, or watever, use ev, who cares abt fuel price..
actually its basically of the shortfall of earnings. the solution is there d, its ABCD GST. tax the tax evading companies, and auto earn rm50+ BILLION. Ini tax rakyat company taikun terus kaya.
Pardoning this fella was a mistake
What mahakaya & mahamiskin?
You give subsidy to the B40 also no use. They clog up the road only.
Just charge everyone the same price. The B40 won’t be voting you anyway.
go investigate all the cina 8A81 businessman that run tax but got vellfire
How you know chinese businessman did not pay tax when tax recod shows chinese are the highest tax contributor in Malaysia? You sound racist and love to fitnah. No wonder you are so poor. God will never bless people like you
You must be the cina 8481. Hello lhdn.
Semoga segala janji2 palsu beliau memakan diri. Beringatlah, perbuatan sebegini dilaknat keras oleh tuhan. Itupun jika beliau percaya pd tuhan la. Mohon bila meninggal tanam sendiri. Cukup2 la menyusahkan rakyat jelata ni.