T15 income level will be based on location, as RM15k is considered rich in Kelantan, but not in KL – Rafizi

T15 income level will be based on location, as RM15k is considered rich in Kelantan, but not in KL – Rafizi

Economy minister Rafizi Ramli has reiterated that the definition of the T15 category that will be excluded from RON 95 petrol subsidies (or will it be T10/T5, floated by prime minister Datuk Seri Anwar Ibrahim on Sunday) is expected to take into account location and net disposable household income.

Rafizi said that 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. These details are necessary to provide a more accurate framework for the T15 classification, which will be determined based on locality instead of the national average used by previous policies, he said.

“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,” he said in Melaka, reported by Bernama.

T15 income level will be based on location, as RM15k is considered rich in Kelantan, but not in KL – Rafizi

“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 explained. Gua Musang is in Kelantan.

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’.

“This means that for each family of a certain size, what is the minimum amount needed to lead a decent life. A decent life is defined not just by having a good home and access to food and drink, but also includes expenses for participating in social activities, entertainment, and so on… with health being well taken care of,” Rafizi elaborated.

This isn’t the first time that the minister is mentioning classification based on more than just a household’s income. Last week, he said that the government will take into account net household income ‘to ensure the people can lead a decent life’.

T15 income level will be based on location, as RM15k is considered rich in Kelantan, but not in KL – Rafizi

“I can confirm that the new method will not depend solely on gross household income. We are currently working on improvements based on net household income. It will also consider several other factors. Once that’s finalised, we can then set the statistical lines (for population groups) such as B40 and T15,” he said last week.

The term ‘T15’ is a new one, first mentioned by the PM in Budget 2024. Referring to the top 15% earners in Malaysia who he described as maha kaya, this group will no longer enjoy subsidised RON 95 when targeted subsidies for petrol comes into place from mid-2025.

As there was no elaboration then on who exactly is T15, many searched and found stats that pointed to RM12,000 or RM13,000 income as the point where a Malaysian household is classified as T15. For a working couple, that’s RM6,000 salary each, so many were shocked that they could be the maha kaya who will have to pay market price for petrol. Anwar, who is also finance minister, then walked back on his T15 definition. Curiously, PMX doesn’t really talk about this net household income model, at least not publicly.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Susukotak on Oct 29, 2024 at 12:49 pm

    Dah tu harga petrol nak ikut negeri plak?

    Like or Dislike: Thumb up 20 Thumb down 1
    • RM1.50/L petrol mana? on Oct 30, 2024 at 9:11 am

      Rakyat asking: Where is the today win tomorrow price down?

      Like or Dislike: Thumb up 12 Thumb down 0
      • Penipu Malaysia Ke-10 on Oct 30, 2024 at 10:35 am

        Sedaghe sedaghe
        Hari ni ni saya menang
        Besok harga minyak turun
        Saya ulanggg….

        Like or Dislike: Thumb up 8 Thumb down 0
  • hilux on Oct 29, 2024 at 12:56 pm

    Masa disel ko tak cakap macam tu pun , sapu bersih. Sabah serwak tarak bran buat

    Like or Dislike: Thumb up 16 Thumb down 1
  • 4GR-FSE on Oct 29, 2024 at 1:00 pm

    You can categorize how you want, it doesn’t matter..
    Just good luck with the implementation when you try to define 2 different retail prices at the pump..

    Like or Dislike: Thumb up 11 Thumb down 0
  • kl putrajaya area will experience a surge of registered residents, everybody wants to be kl lang.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Menteri Formula on Oct 29, 2024 at 1:18 pm

    Dengar boleh, percaya jangan

    Like or Dislike: Thumb up 21 Thumb down 0
  • eeeriz on Oct 29, 2024 at 1:50 pm

    IMHO, T15 is not maha kaya, it is just ada duit. Only those T5 can be considered as very rich. No Maha Kaya amongst human being..

    Like or Dislike: Thumb up 16 Thumb down 0
    • Susukotak on Oct 30, 2024 at 6:11 am

      All we need is same treatment whatever our income. For gov, collect tax properly. The problem is T5 run from tax.

      Like or Dislike: Thumb up 4 Thumb down 0
  • Ben Yap on Oct 29, 2024 at 2:22 pm

    PMX made a lot of blunder during his stint as PM. many times what he said or do has raised eyebrows and cause backlash from the public. His popularity has also gone down and he is treading on thin line.

    Like or Dislike: Thumb up 21 Thumb down 2
    • Tokok...a clear and present danger on Oct 29, 2024 at 4:01 pm

      RAFIXI THE BLUNDERS expert,
      Today I work in KL,earns 15K monthly. I just received a letter, by Aug 1 next year,will report to branch office at Kota Baru.So by telling u I m based in Kota Baru next year,I sure kena kicked out of enjoying any fuel subsidy.
      So based on location criteria..do your Padu dudes got time to check with all the candidates’office location,to see who should be excluded? Stop tokok like a mad man.
      Folks,lets vote this dude out in GE16..just a never ending eyesore.

      Like or Dislike: Thumb up 17 Thumb down 2
      • Abe Mi on Oct 29, 2024 at 5:45 pm

        You work in KL but return to Kelantan to vote. How can you vote out Rafizi at Pandan then.

        Like or Dislike: Thumb up 1 Thumb down 0
    • ahwahkor on Oct 29, 2024 at 4:15 pm

      Ben Yap, even his lawyer lathefa Koya who fought for him during his refomasi days,is totally bewildered..she is vehemently disappointed .
      I think another Malay candidate from PKR to replace him at GE 16 is more realistic if PH wins.
      Never experiment with the greenies.See all the Jana Wibawa scandal during covid lockdown.

      Like or Dislike: Thumb up 2 Thumb down 7
  • Azmir on Oct 29, 2024 at 2:41 pm

    Please stop making jokes Mr.Formula. How on earth u want to control based on location. People shift job every other months. Let alone mechanism to identify T15, T20, M40, B40 etc..cakap boleh terbang tinggi woo..

    all in all..scrap the non-subsidy thingy..too much or causing loopholes.

    Why not reduce some of officials expenses, other wastages, lean towards ESG savings or worst, make it flat rate i.e RM2.30/litre..and strictly RON97 for non-malaysian cars..

    Good enough. Then focus on making more money for rakyat. Not taxing more. U work for us, we are paying u dear Mr Formula

    Like or Dislike: Thumb up 31 Thumb down 0
  • Squid on Oct 29, 2024 at 2:42 pm

    I foresee a sudden jump in employment moving from Kelantan to KL, on paper… LOL

    Like or Dislike: Thumb up 10 Thumb down 0
    • piuer on Oct 29, 2024 at 5:47 pm

      All of this time most Kelantanese already working at Shah Ale, Kaje, Bange, etc

      Like or Dislike: Thumb up 2 Thumb down 1
  • This is dumb idea, some localities do not have public transport and have to use cars. Why should KL with better infra and better career opportunities gets the advantage of cheaper fuel?

    The subsidies should be kept simple and volume based to usage cap, eg. 60 liters for one car registered under one IC for 18 years and above.

    Like or Dislike: Thumb up 16 Thumb down 0
  • hazri on Oct 29, 2024 at 3:59 pm

    maybe YB rafizi didnt realize but gua musang in kelantan life cost is higher than another daerah in kelantan. because gua musang is far from the city and the resources is limited. but tbh, 15k in gua musang is consider rich actually. i afraid that all the higher earner in kampung change the address to city like kl, penang, johor so on just to avoid being remarked as T15.

    Like or Dislike: Thumb up 4 Thumb down 0
  • watmau on Oct 29, 2024 at 5:02 pm

    boleh la dah x payah pergi kerja biar orang lain je buat, specialist semua x payah kerja buat mereka je buat semua. gaji tinggi, tanggungjawab kt company tinggi, belajar tinggi, last2 lepas cukai, gaji sama je dgn yg lain yg berusaha ala kadar je. incentives tiada. buat pe kaya kalau lepas cukai sama je.

    Like or Dislike: Thumb up 0 Thumb down 0
  • watmau on Oct 29, 2024 at 5:05 pm

    if want to abolish, abolish for all la, fair for all. at least it motivates people based on your logic.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Laugh on Oct 30, 2024 at 8:36 am

    Stop with all the drama.

    Just remove all the subsidies and let all die together fast.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Anak Jati on Oct 31, 2024 at 7:42 am

    KETIMBANG….Kerajaan Kencing Tipu & Sembang lebih….

    Like or Dislike: Thumb up 0 Thumb down 0
  • some guy on Nov 01, 2024 at 8:31 pm

    RAKYAT didahulukan, untuk TIADA Subsidi.

    MEANWHILE, those FOREIGNERS enjoy freely & PAYS NO TAX

    Like or Dislike: Thumb up 0 Thumb down 0
  • Saya ulammm... on Nov 05, 2024 at 7:46 pm

    Teringat video pakar formula ni pd suatu masa dahulu. Semoga apa yg dilontarkan oleh beliau memakan dirinya. Perbuatan berkata dusta & nista ini dilaknat tuhan. Meninggal kelak tanam la sendiri, jgn menyusahkan rakyat jelata lg, cukup2 la apa yg berlaku skrg ni, haru-biru dibuatnya.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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