Malaysiakini Letter

Gov't gives you a rebate but robs you on taxes
PSP | Jun 13, 08 4:16pm


The mainstream media should realise that the average per capita income in Malaysia is US$5,000 compared to Singapore’s US$25,000 when they make fuel subsidy comparisons with our neighbours south.

Thais do pay RM3.90 per litre of petrol but they also pay RM10,000 less for new cars over there. Driving licenses do not need to be renewed and they have no road tax. Plus you can drive from Hat Yai to Bangkok on a six-lane highway without paying any toll.

Malaysia has driving license renewals, road taxes and tolls everywhere. Singaporeans pay in their currency, so it is distorted when you keep quoting in the ringgit. Oil is still relatively cheaper for the Singaporean and they are not crude oil exporters.

Compared to oil producing countries like Saudi Arabia at 38 sen and UAE at RM1.19, our oil prices here are indeed high. On top of that , a Toyota Vios cost RM89, 000 here while only being RM62,700 internationally. Malaysian Vios owners are coughing up an extra RM26,300.

So the government gives you RM625 as a rebate but robs you of RM26,300 in taxes they collect when you buy the car. Where is the fairness in that? We should feel penalised.

Car taxation is government profit, fuel sales is Petronas' profit which also translates into government profit. The government is ridiculing Malaysians by continuously pointing at the global fuel price changes. Malaysians are not stupid.

And which idiot economist pays rebates using the cubic capacity of the vehicle? An average office clerk may own a second hand 1300cc Proton Iswara costing RM7,000 (rebate = $625) while the ‘Datuk's’ children can own a fleet of 10 new cars of BMWs, Audis and Volvos all less than 2000cc costing RM2 millions and get a total rebate of RM625 x 10 = RM6,250!

The word ‘subsidy’ has been brandished by the BN government as if it has so generously helped the rakyat and in doing so incurring losses. The BN government claims that it is a ‘subsidy’ because the oil is kept and treated as somebody else's property.

By right, the oil belongs to all citizens of the country and the government is a trustee for the citizens. Thus, the BN government cannot claim that it has subsidised the citizens.

This guy has just said the right things, I mean the media and goverment are blinded the rakyat with facts that used for their advantages. Of course there are countries that have really cheap oil but look at them as a country not at their fuel prices. Countries like Sudan, egypt do not have a stable economy and their most of their population are poor. Compare their development to Malaysia? WE ARE WAY AHEAD OF THEM. Secondly, the media is twister the whole story and the raykay have very poor understanding of the oil issue, this is all related to Petronas. If Petronas makes money then it is good for the country!!!! This is a fact do body can deny. Of top of giving money to the Goverment, Petronas is also paying tax. The articles posted earlier shows clearly how much money the goverment is making from Petronas. Petronas has nothing to do with the fuel price. Petronas have been selling fuel to international market based on the world's oild price which is usually set by the Americans. The fuel sold locally are controled by the goverment, Petronas sell at the price which is set by the goverment. The price increased is termed to give a wrong idea, the truth is Petronas DID NOT INCREASE THE PRICE it is just that the goverment reduce subsidy. Meaning the 78 cents are not being paid by the goverment anymore. So this all conclude to Petronas are not gaining any extra profits from the "fuel increase".

There are few things that needs to be done to help this situation. People understand that the price will soon increase but the sudden change made it worst because people are not prepared for it. Hell! I wasn't prepared for it. Fuel price increases = everything else increases. What the goverment needs to do is to reduced the taxes or increase the minimum wage in Malaysia. Look at UK, fuel price is higher than Malaysia, taxes are way off the charts too. We need to balance things out, if something increases then everything else must increase. IE the cost of living now has sky rocketted and yet the salary is still maintained, those in low-income group can't make a living. In the UK even is you work as a security officer (pak guard) you can earn a decent living, but in Malaysia guards usually have 2 or 3 other part time jobs. This is insane.