My Letter To NST on the Fuel Subsidy Issue

[anxious]

Here is a link to my letter which was published in NST today.http://www.nst.com.my/Current_News/N...cle/index_html Also reproduced here for your easy reading:- Fuel subsidies: Devise an equitable system New Straits Times15 November, 2007THE prime minister's recent statement that the government is looking at revamping the fuel subsidy system was expected, given the current high oil prices. However, what I found disturbing was the proposed discriminatory two-tier tariff structure between the "poor" and the "rich".How do you effectively carry out such a tariff structure in our country and how do you determine who is "rich" and who is "poor" for the purpose of such a policy?Even the present diesel subsidy has been abused. I have no doubt that any such discriminatory tariff structure will be unworkable.I agree with Syed Nadzri ("Fuel subsidies: Loaded, unloaded" - NST, Nov 13) that some of the options suggested are impractical and open to wide-scale abuse.As Syed Nadzri acknowledged, a blanket ruling affecting cars above 2,000cc (for the rich) which will have to pay more and a lower price for smaller cars at the pump is simply not enforceable given our "creative" nature of getting around such rulings.As for fuel tank nozzle modifications, as acknowledged by Syed Nadzri, such a system would not only be expensive but also almost impossible to enforce.As for higher road tax or sales tax for bigger cars, Syed Nadzri points out that such a system is already in place.It should be noted that taxes on higher-engine capacity cars in Malaysia are among the highest in the world. To push them any higher would kill what is left of the car industry in our country.As for higher road tax, I currently pay RM889 for road tax per annum for my 12-year-old 2,500cc sedan while my wife only pays RM90 for her 1,600cc sedan. On the other hand, my weekly petrol bill (RM80 per week) is about the same as hers as her office is further from our home than mine.I am sure that many people driving cars under 2,000cc use much more petrol than others who own cars above 2,000cc. In fact, we drivers of higher engine capacity cars are already paying for our "indulgence" by way of higher road tax under the present road tax structure.I feel when it comes to car ownership, there is no clear way to distinguish "rich" and "poor" based on the engine capacity of the car one drives. You may well have a motoring enthusiast like myself owning a 2,500cc car (which happens to be 12 years old) without actually being considered "rich". Why should I and many others like myself be penalised with the burden of subsidising other motorists' fuel bills?Furthermore, even if the government decides to penalise "rich" car owners, that is those who drive cars above 2,000cc or earn above a certain income level, I don't think it is going to solve the government's fuel subsidy woes as we only account for a minority of the users of petrol. Although taxing the "rich" may be the popular option, it may not be the right one to address this issue. In reality, we all have to prepare ourselves to face higher petrol prices next year and should strive to conserve the use of this resource and find alternative and cheaper modes of transportation if driving becomes unaffordable.Therefore, any decision by the government on the fuel subsidy should not be discriminatory and should be fair to all and should ultimately be based on usage of fuel by the person concerned.Happy reading.

 

[jarance]

The link is incorrect. Here is the correct link..

http://www.nst.com.my/Current_News/NST/Thursday/Letters/2084546/Article/index_html

 

[astroboy]

Oil a.k.a. black gold is a scarce resources and thus must be used with care. My employer gives me a fleet corporate petrol card. That does not mean I must drive a 350Z, or 135i. Instead, I am currently using a RM70 annual road tax 7-seater 1.3L carry all MPV. Its part of every human being's duty to conserve Earth resources.

For sheer driving pleasure, I plan to get a UDM soon but will only use it discreetly for the pleasure of it and not for day-to-day commuting, outstation business trip, or perhaps short distance where my wife just work less than 5km away from home while I'm working 20km away and shall be using the 1.3L.

Petrol prices in our country is not expensive compare to many countries I have visited before. Its our SALARY too low and thus petrol become relatively expensive to all.

Driving a 3.5L car for daily commuting, to me is a sin and is not helping at all to save our already-in-bad-shape Earth.

I know bed-minton is fun but u don't do it every day... right?

I agreed with what anxious said in the article because the "rich" and the "poor" has been properly "treated" through the different import duty, sales tax, income tax brackets and shall not be determined at the fuel pump.

 

[535i]

I am driving a 3.5 liter car for daily commuting. The car is 20 yrs old and I am paying 4k+ for my r/tax. And yes - i am also using a coporate petrol card.

Is it a sin ?

 

[astroboy]

Its not about the age of the car or even the CC of the car. Its about using the earth resources efficiently.

If u don't tekan too much, I'm not surprised ur fuel consumption is better than an 660 auto Kancil.. So in that context.. NO..

I smoke and drink too. So also kena SIN tax kao kao ma..

Aiyaa... everyone entitles to own opinion and the beauty about opinion is they are never wrong because every opinion is derived from personal point of view to that particular individual.

So if u think no, then no la. I couldn't be bothered..

 

[xtracooljustin]

Shouldn't we be rejoicing for the high oil prices which means bigger profits by Petronas? Which translate to bigger revenue to the Govt?

IMHO its not about devising a 2 tier system for the 'rich' and 'poor'. Its about putting the money earned by Petronas to good use. No point devising how to split the cake when the cake isnt getting any bigger. Whats needed to be done is to increase the size of the cake ie, diversify and creating more value added economy. With the current economy, our country is a sitting duck should a big crunch come by anytime soon.

 

[BlackCat]

Bros & Sistas...

Just my two sen worth of an opinion on the subject:

1. Continue the subsidy... with conditions such as the following:
2. Each registered owner of a private vehicle is entitled to a fixed amount [lt] of subsidized fuel per month. So if you do not legally own a registered vehicle, you are not entitled to the fuel. That means my 3 kids [who do not own any vehicles] can't go to the pump to buy fuel!!!
3. One private citizen can own as many private vehicles as they want, but is only entitled to that same fixed amount of subsidized fuel. So, even if you own a used car delership with 10 cars, you are only entitled to your one quota of the subsidized fuel.
4. When you have exhausted your share of the subsidized fuel, you will have to buy un-subsidized fuel at whatever the market price dictates.
5. SUBSIDIZED FUEL IS ONLY FOR US TAX-PAYING MALAYSIAN CITIZENS AND NO-ONE ELSE. SO YOU EXPATS & OTHER FORIEGNERS ARE NOT ENTITLED!!!.
6. ALL COMMERCIAL VEHICLES ARE NOT ENTITLED FOR SUBSIDIZED FUEL. As you make claims for your fuel as the company expenses anyway!!!
7. How do we go about it??? Well, you as a Malaysian citizen and of legal age to own a vehicle should have your NIRC right. That NIRC has a chip embedded in it right. That chip can hold info. All pumps have the facility to read cards right. These readers connect to some kind of a system and ultimately a database right... So, we have the National Registration d/base talking to the JPJ's d/base and the 'National Subsidized Fuel' d/base. Then go figure...
8. The savings derived from FULL subsidized fuel to a QUOTA based system can be used for the costs to have the infrastructure [item 7. above] implemented.
9. The methodology is as above. The technology is available out there. Its a workable plan and I truly believe this can work [of course with more details to the whole plan worked out]. BUT ITS UP TO OUR GOVERNMENT. DO THEY HAVE THE BALLS TO DO IT???!!!
10. I hope someone IN the government is reading this and would propose this plan.
11. Last but not least: ITS FAIR COS EVERY ONE GETS THE SAME AMOUNT OF SUBSDIZED FUEL, RICH OR POOR!!!


Private Citizen,
BlackCat

 

[ramsing]

i say just screw it and faster finish up all the petrol now. if u think its expensive now, wait until 5 or 10 years down the road. scarce resource = less and less and more and more expensive over time.

why wait? the rest of the world is guzzling at an exponential rate. its going to get more expensive. USD500 a barrel in 10 years? possible. so burn maximum now, later they might be nothing left to burn.

condition of the earth? climate change? the world is already screwed. 1st world countries polluted for 200 years unchecked. now they making noise. 3rd world countries are polluting more n more everyday. they say bugger to all.

our kids might have to stay on the moon and drive solar powered . but at least i would have had the memory of going full throttle on a petrol powered guzzler.

anyways, govt increase price, can anyone do about it? no right. so just floor it. at least i enjoy my $$$ burning into smoke.

sigh.....10 more minutes to 6pm so can balik. tick tock tick tock....

 

[redbaron]

Everything will go up only rain come down. use BMW and than want to complain about fuel use bas la kawan

 

[astroboy]

Sounds like a plan..

What about Malaysian that never pay tax? Maybe evaded or maybe really low income group?

Actually why subsidise in the first place? Is it not to benefit the commercial sector so they don't transfer it to the public in the final consumer product to keep the CPI low? Or is the subsidy for us tax paying citizen to drive bigger car? Confused lio.

and Petronas may not necessary be making more. I takut they already sell their un-tap oil in the future market at much lower price lio.. thinking they damn smart when they lock in the price at .... probably USD70 per barrel.. Mana tau.. ?? Otherwise how come nobody touch on the subject?

What ramsing say is correct too, who can guarantee there's tomorrow..

 

[dannybaba13]

car price n petrol is a issue but let work harder for the future,,developed the country ,,and think for a wider vision,,dont think of subside only,,,try to mainatain n progress without subside,,i think everyone can make it..lets develop ourselves to be a better man,,if we can drive bimmer,others can do it to,whether they wan or not to work hard,,everybody in the forum aslo work hard to maintain their car n image..lets do it regards tqvm dan

 

[tongsatriani]

just dun sudsidise lor....do like other countries. oil price fluctuate daily. who need it, they pay it la.

if cannot afford, take public transport la!

to me, if a person can own a vehicle, it means that person had prepared for these kind of expenses.

So, take away the subsidy....easy...

 

[chairoger]

I am driving a 3.5 liter car for daily commuting. The car is 20 yrs old and I am paying 4k+ for my r/tax. And yes - i am also using a coporate petrol card.

Is it a sin ?

HELL NO! Its more like Sheer Driving Pleasure. Cabutz!! kekeke

 

[BLaCkHoWLiNG]

I am driving a 3.5 liter car for daily commuting. The car is 20 yrs old and I am paying 4k+ for my r/tax. And yes - i am also using a coporate petrol card.

Is it a sin ?

it's a sin when u drive that 3.5liter car to pickup ah moi's @ ramsing's starkiss!


*cabut*

 

[astroboy]

Yah... sin tax cover alcohol and tobacco.. and now petrol..

I have been to many motoring forums and this is one forum, u can't find member comparing FC.. oh.. if you all are unfamiliar with FC, that's not Financial Controller ... it stand for Fuel Consumption and I think if any member were to bring up this FC and start comparing FC.. many would jump in shoot this thread starter... including me..

Take bus la... because these people, taking Taxi is also a sin.. hahahaahaaa..

UDM when imported also kena tax kao kao what... sin car lor... hahahhaaaa

 

[redbaron]

UDM when imported also kena tax kao kao what... sin car lor... hahahhaaaa

If that is the case what are you doing at this forum?

 

[Lee36328]

From the New York Times, Automobiles Section.


"Malaysians, however, don’t have an easy time indulging their automotive desires, and are more often spectators than participants. The biggest hurdle is the country’s per person purchasing power parity, which was $12,900 in 2006 compared with $44,000 in the United States. Basic transportation like the Proton Persona sedan costs about $14,000, about the same as a Mazda 3 in the United States, but takes a higher percentage of the average income. Step up to, say, a BMW 325i and the base price is more than $87,650 in Malaysia versus the equivalent model, the 328i, at $33,175 in the United States."

Full article here.

http://www.nytimes.com/2007/11/11/automobiles/11MALAY.html?_r=1&ref=automobiles&oref=slogin

 

[astroboy]

UDM when imported also kena tax kao kao what... sin car lor... hahahhaaaa

If that is the case what are you doing at this forum?

Huh.... ???

Like u and other members la.. same "religion"..

We worship UDM ma.. :love: