Recently, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the government will implement a fuel subsidy rationalization scheme to consumers that will be implemented next year, will be divided into three tiers depending on the monthly income.
The public still not clear about the meaning of the monthly income was said by the Ministry of Finance on the rationalization of the fuel subsidy scheme which will be implemented next year. Whether the basic salary or gross income or net income?
He said those who are earning below RM5, 000 a month will receive a full subsidy, while those earning between RM5, 000 and RM10, 000 will get part of the subsidy and those earning above RM10, 000 are not eligible.
If is calculated from basic salary its meaning those who receive below RM5000 basic salary will enjoy full subsidy but what about their basic salary is more than RM5000 after taxation, EPF, and other deductions of course they are also entitled to receive the full subsidy, if counted in terms of net income. The question now is whether the government assesses in terms of basic salary or net income?
Similarly, those who are self-employed, whether the government can identify their actual income because they do not have a pay slips like those who worked with government departments or private companies. The matter must be explained to the consumers so that it does not troublesome the consumer when refueling later.
We suggest that the government review the fuel subsidy rationalization scheme based on monthly income by using more effective methods such as engine capacity or vehicle CC or centimeter cube is the swept volume of the engine. The size of the engine, the larger CC or centimeter cube engine will be used. Most luxury vehicles such as sports cars and import branded cars using a large CC.
The government can identify the consumer by type of model luxury vehicles those imported from abroad because most of those with high incomes are able to buy these imported luxury cars. Maybe the public will say not all the luxury branded vehicles only for the rich, there are also consumers buy a used luxury cars at low prices base on the age of vehicles and depreciation of the vehicle. So consumers of used luxury vehicles 10 years and above can get a full subsidy.
Among other recommendations is that the government can encourage Malaysians to buy local cars by giving fuel subsidies or lower the price of a local car with a reasonable price. When many Malaysians buy locally-made cars, this will indirectly help the local automobile industry more robust again besides it can generate national financial from flowing out.
Rationalization of the fuel subsidy scheme based on monthly income should be reviewed as it is not suitable to be implemented in this country because they can be abused by certain parties by give an inaccurate statement of income as self-employed persons who do not have a pay slips and so on as evidence of their actual income.
Perhaps those who do not have a pay slips earn more than those working with the private sector and government. Certainly this situation is difficult to control and the people who should receive subsidies eventually marginalized if they fail to fill in the income statement, especially the senior citizens and the villagers who live far inland.
This is not to mention those who have to renew their MyKad to be updated so that they can enjoy the oil price subsidies. All this requires costs and it is not worth it to consumers in rural areas who had to come to the city solely to renew their MyKad that is not necessarily they will receive a subsidy.
We urge the government to review and consider the proposal by further improve so that it beneficial to all Malaysians.
Jofri Jaraiee
PAS Sarawak Deputy Commissioner III cum PAS Miri Chief
