Towards a more equitable fuel subsidy plan?

[anxious]

Given the current global fuel prices, the increase of fuel prices in Malaysia was inevitable.However I was a bit disappointed with the proposed revamp of the fuel subsidy wherein the government has proposed as follows:-i) a RM625 annual cash rebate per vehicle, for owners of private vehicles with engine capacities of up to 2,000cc, and pickup trucks and jeeps with engine capacities of up to 2,500cc;ii) a RM150 annual cash rebate for owners of private motorcycles with engine capacities of up to 250cc;iii) a RM200 road tax reduction for owners of private vehicles with engine capacities exceeding 2000cc;iv) a RM50 reduction in road tax for owners of private motorcycles with engine capacities above 250 cc;v) the proposed cash rebates will be paid via Money Order upon renewal of road tax, from July 1.While I welcome the idea of some form of rebate, I am of the opinion that the rebate scheme as proposed by the government may not be very effective as it may not reach the intended target group especially the lower income group wherein:-a) the proposed increase in fuel prices will not only affect owners of vehicles but will hit consumers across the board as everyone will be affected by an increase in the prices of goods and services. Therefore I would suggest that the proposed rebate of RM625 or such other amount deemed fit by the government be given to all individuals with a annual income of up to say RM60000 per annum upon the filling of their tax returns wherein those whose income is not taxable will be able to get a cash rebate paid to them by Money Order and those who have taxable income will get a reduction of their income taxes to the amount of the fuel subsidy rebate or a cash rebate for the difference between the tax payable and the rebate entitlement. This measure will also encourage more Malaysians to file their tax returns. In fact the law requires all those residing in Malaysia to file such returns but a large part of our society neglect this obligation. Only responsible and law abiding citizens should qualify for such rebates. b) in the event the government still prefers the proposed method of giving rebates based on the engine capacities of the vehicles owned, then the engine capacity should be reduced to not above 1600cc instead of 2000cc as proposed. Anyone who can afford a RM100,000 or more Civic, Altis or Perdana should not be receiving any form fuel subsidy rebate. The depreciation of these cars itself far exceed whatever fuel bill their owners may have and they should be made to pay for their indulgences.c) any savings made as a result of the lowering of the engine capacities of vehicles should be redirected to the owners of the lower cc cars and motorcycles wherein under the present proposed system:-i) a owner of a car who currently spends RM300 per month on petrol per month will be paying RM420 as a result of the 40% fuel price hike. However he will only receive a subsidy of about RM52.00 per month based on the proposed RM625 cash rebate for cars wherein his monthly fuel bill will be RM120 higher;ii) as for motorcycles anyone who currently spends RM80 per month on petrol will be spending about RM112 per month based on the new prices. The rebate of RM150 per annum only works out to be RM12.50 where his monthly fuel bill will be about RM30 higher.Therefore I would proposed that owners of vehicles under 1600cc be given a cash rebate of at least RM1200 per annum or RM100 per month and owners motorcycles under 250cc be given a rebate of RM300 per annum or RM25 per month. This would certainly cushion the effects of the fuel price increase on the lower income group. The rest of us would just have to bite the bullet and find ways and means to adjust to the higher fuel prices. As a start, my wife and I have decided to car pool for between 2-3 days in our working week.I would like to clarify here that I personally do not stand to gain from any of the above said proposals as I drive a 2500cc car (notwithstanding it being 13 years old ) and my annual income exceeds the threshold proposed by me. I decided to pen the above said proposals as I feel that instead of lashing out at the government for the fuel price hikes and ridicule its efforts to lessen the impact, those of us who are capable of making constructive suggestions should do so now in the hope that our government is able to frame a more equitable fuel subsidy plan in the near future.

 

[wc9922]

Bro, too late to complain. If you can please lobby the goverment to increase the salary scale of the working class and higher schedule of fees for services.

 

[loafer]

Bro, too late to complain. If you can please lobby the goverment to increase the salary scale of the working class and higher schedule of fees for services.

This is something that the gov should have taken into consideration ages ago. Things like minimum wage and all were put off for so long.

Whatever it is, the gov is walking down the wrong path.

 

[devilsadvocate]

why do we need subsidies?

the 'adjustment' of the fuel price by reduction of subsidy is most welcome.

but what we must ensure is that the gomen does not screw around with our money. one darn good example is the FT Minister and KL datuk Bandar going to the States and Europe on a lawatan sambil belajar.

in fact i would personally be willing to charter a whole bus(even more if necessary) for all those interested to go down to Singapore and learn a thing or two about governance and transport systems.

so instead of whining and bitching about the increase we should be channeling our energies on making sure that our money is spent wisely.

and this is our collective duty.

and if our money is spent wisely i.e good mass transit system, good infrastructure, good heal, good etc. Then the overall cost of living should decrease.

one good and simple example that i personally can relate to is my bro in Singapore. He stays about 20++ km from Singapore city centre- his work place. The travel time between his house(from doorstep) to his office is exactly (32 minutes). And this happens every day without fail. The trains are so wide and comfy - so many freaking coaches. So damn punctual. The cost $1.++

In freaking malaysia - its costs me RM 2++ from KLCC to Wangsa Maju - the train is always jammed pack - so few coaches. And from W Maju to the house - another 20 minute journey. And the distance is only 14 KM.

conclusion the biggest change that we need is : -

our complacency and lackluster attitude of accepting a 3rd rate gomen and ministers who seem to be preoccupied in 'stealing' our money


LETS MAKE THAT CHANGE HAPPEN

cheers

 

[astroboy]

anxious,
a) .. many rich businessman under-declare their income tax, so pity those employed as there'r no escape.

b) .. that will kill the Proton Perdana market. 2L car is more suitable and safe for long distance 5 pax balik kampung journey. And 2L is just entry lever to luxury car... so its not right to classify 2L itself is luxury, beyond 2L then YES!

c) .. cannot afford a car, ride motorbike la. Cannot afford motorbike, take public transport la. I cannot afford 325i, so buy 320i la! I cannot afford to drive my 320i daily, so I drive a 1.3L for my daily office commuting la.

loafer is right! what happen to minimum wage!? Naik gaji polis! This is like you don't give pocket money to your child and insist they bring home cook food to school, even after the leave school. When r they going to grow up?

devilsassociate has echo the above. Why do we need subsidy?

The remaining problem is why do the Brits pay £54k (RM350k)for a GTR35 and we have to pay RM724k ???

The next remaining probelm is why a fresh grad Brits with £2k income can afford a £45k M3 and we Malaysia fresh grad earning RM2k can only look at a RM45k Gen2..

 

[anaksarawak]

I agree with this point of yours

"The next remaining probelm is why a fresh grad Brits with £2k income can afford a £45k M3 and we Malaysia fresh grad earning RM2k can only look at a RM45k Gen2.."

 

[anaksarawak]

There so many old unwanted or useless car around in KL.

I think we should go and buy the "registration card" of the very old unwanted cars. If you can buy 10 reg card from junk yard ..then you will be able to claim RM625 x 10 = RM 6,250 or RM520 per month.



With that amount.. you can pump your heart out!

 

[ALBundy]

Malaysians should prepare themselves for higher fuel prices in the future, this is inevitable, given the fact that oil is a non-renewable source of energy.

There is no doubt that subsidies dulled the competitiveness of this country and also promote wastages and with this increase everyone will has no choice but to mengubahkan gaya hidup masing masing.

With the 40% fuel price increase, I wish to ask the government to mengubah cara pentadbiran dan mengurangkan korupsi, kronisme dan nepotisme. Spending RM 250 for a set of screw drivers, RM 4.6 billion for a white elephant in Port Klang, RM 21 million for the Selangor state exco village in Shah Alam and etc are not good examples of good governance. If subsidy is indeed bad, please stop giving millions to Proton in the guise of R&D grant (latest is RM190 million). It is time for Proton to face the world and stand on their own two feet. Our car industry should be liberalised!!!

Likewise, please remove/reduce exorbitant duties on our cars and promote fuel efficient cars like the Honda/Toyota hybrids, those with the latest diesel engines (120d and 320d is selling like hot cakes in Europe) and allow other petrol companies to sell natural gas, not forgetting improving our fuel quality!!

Also, the promise of improving the public transport by DPM during the last petrol price hike (RM 4 billion saved) remains as what it is, A PROMISE, albeit an empty one. Many Malaysians would love to mengubah gaya hidup and take public transport to work, but given the sad state of affairs, many have no choice but to drive to work.

 

[planta]

v) the proposed cash rebates will be paid via Money Order upon renewal of road tax, from July 1.

This new process would definitely require some sort of work required to link the database from JPJ to Post Office.

Why is the goverment making this difficult to the people?
After paying road tax, incur additional cost to drive and park at the post office. How efficient is the post office and can we really be sure that there will be no abuse. Malaysia Boleh creative spirit .... anything can be done...

With the govt service sector attitude I bet we will a great customer satisfaction level. Can the small post offices in small towns perform the same function. Do they have the right equipments and manpower to suddently cope with the increase in workload? Post office would have to invest to run more efficient pay out system. Spend more govt or our money.

When all the abuse goes out to the public, a new company will be appointed to run this work to for the government. Lagi extra cost and our money gone.

Elminate road tax la and no cash rebate. Since govt is not paying subsidy anymore, why need to pay more to govt. Everyone should pay no road tax and no additional duties on transportation.

planta

 

[thinice]

1. I would like to see all forms of duty for cars to below 2000cc scrapped altogether so that people can decide for themselves what is the best and most efficient car to use. This will also encourage people to get new and more economical cars rather than using 20 yr old oil burners.

2. All public transport rates to be halved and the expansion of the system to be made development priority no 1. Please don't talk about masjid kristal or submarines or corridors until this one is solved...

 

[pussy]

I see corruption on a rise from now on..

on the other hand, there will be more robberies, highjacking and kidnapping soon..

what a way to live..

pity, what will our children have to go thru later...


for the next two days, my mood is will be on a dark side..

 

[devilsadvocate]

hate to be pessimistic - but there is really a greater chance of a cow jumping over the moon - compared to good governance being practiced in Malaysia in the next 50 years.

 

[flash]

for the next two days, my mood is will be on a dark side..

The dark side? So will we be seeing the munster E30 on the prowl on the hgihways and byways for its next victim?:smokin:

 

[funfer_fahrer]

Bro, too late to complain. If you can please lobby the goverment to increase the salary scale of the working class and higher schedule of fees for services.

In afraid by having more salary from the employer is not the answer to this problem. If this were to happen, the prices of other goods will increase too. At the current fuel price of RM2.70/litre we will definitely feel like paying RM6.00/litre after taking into account the increase in prices of other goods as well. If everybody has a pay rise then, it will feel like paying maybe RM8.00/litre. The best course of action for working class people is through tight budgeting with available resources and increasing OTHER streams of income. At the same time, use as little fuel as possible such as use a bicycle within 5 km radius from home whenever possible (a car consumes a lot for the first 5 km), switch off the aircond whenever possible, carpooling etc.

 

[davidtch]

I think d q we should ask Pak Lah, where is d dividend paid by Petronas every yr gone 2?

 

[xtracooljustin]

My only grouse is, why the rush?

Announce in afternoon, take effect at midnite? Great stuff!

As learned ppl, we all know subsidized fuels are not sustainable. But instead of giving a shocker of a 78sen increase, y cant da govt do it more progressively? Increase 10sen evy month also cannot meh?

 

[adliz]

hate to be pessimistic - but there is really a greater chance of a cow jumping over the moon - compared to good governance being practiced in Malaysia in the next 50 years.

:rock::top: sad but true.. i believe what malaysia is experiencing is a transition in social and education level.. we are evolving, although a bit later than other countries..

what we ask now is indeed selfish, and inconsiderate of our children's wellbeing, and our children's children.. what we are fighting for clearly benefit US, now.. and NOW only..

instead of asking for things which benefit OURSELVES, what i think we Rakyat shud do is demand for more objective oriented government.. a government which can offer prosperity and stability, for MALAYSIA as a whole.. i dun care which government, as long as someone who can promise betterment in terms of development, inflation, growth, GDP, public healthcare, schools, poverty etc etc.. not like, ME want cheaper petrol, ME want cheaper flour and rice, ME want cheaper water, ME want free local council fine, etc etc.. ME, ME, ME..

so, no matter pak lah or pak anwar.. definitely not this generation.. everyone is fighting for THIS generation, not the future.. I dun see any promises of 'improvement' in those KPIs above.. so many promises here n there, what for.. to gain votes? to gain popularity? or to improve the nation?

my 2 sen..