KOTA KINABALU – While a targeted fuel mechanism may seem like a good idea to cushion the impact of rising crude oil prices and protect the lower-income group, some are questioning if it is even doable.
Elopura Warisan rep Calvin Chong Ket Kiun said that the government might have to fork out even more money to develop the proper system to implement such a mechanism.
“How is the government going to implement the mechanism? Our gas station does not have the system. (Yet) they want the gas station to identify which car is eligible to get subsidised fuel, and keep the record?
Wouldn’t this system encourage the stealing of subsidised fuel? Or wouldn’t gas stations cheat the system? How are they going to avoid this?
“It might be a good idea, but for now, I don’t think it is doable,” he told The Vibes.
Chong said there are simpler options that the government could subscribe to if they want to cushion the sharp jump in the projected fuel subsidy cost without affecting the lower income group.
This includes increasing road tax charges for luxury vehicles, or providing vouchers for vehicles with smaller engine capacity for gas allowances for a year, which can be distributed to the people when they renew their road tax annually.
Meanwhile, Kota Kinabalu DAP MP Chan Foong Hin said that he disagrees with International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali when he suggested that BMW drivers do not deserve fuel subsidy.
“Discriminating the people against their vehicles is not helping anyone,” he said.
Chan said not only the lower-income group is suffering from the increasing cost of living today, but those from the M40 have had to also reduce their expenses.
In fact, he said, the wealth curve between the B40 and M40 has flattened a lot, as the M40 continues to be punished for their perceived wealth.
“The M40 is already excluded from many other aid (schemes). Why make their lives more difficult?
Instead of limiting or restricting fuel subsidy by vehicles according to their perceived luxuriousness, I would like to suggest the honourable minister to instead look at other ways to tax those whose extreme wealth is certain, such as those in the T20 bracket.
“Maybe increase the tax rate to be imposed on the T1 to T20 group through their income tax.
“Wouldn’t that be a much better way instead of targeting the general masses, the general hardworking people of Malaysia in the B40 and M40 group?” he said.
Consumer Chan Tzun Hei also opined that the problem with the mechanism is that it is neglecting the M40 group.
He said that the government must not forget that between BMW and Kancil, there are also Toyota, Honda, and Nissan – essentially middle-range cars.
Between T20 and B40, there is also M40 that needs to be assisted. Those in M40 are the ones who are unable to enjoy the increase in minimum wages, nor are they able to apply for government assistance funds such as the Bantuan Prihatin Nasional.
“They are the group that can easily fall into B40 but are struggling hard to climb up to T20,” he said.
Chan also said the implementation of the mechanism may face several problems.
He illustrated the issue using a scenario in which a rich man who is able to own a BMW chooses to ride a Kancil to fill up the vehicle with cheaper gas.
“What if a Kancil owner sells petrol to a BMW owner with a slightly higher ‘margin profit’ price? How do we tackle such crimes? In the end, it all depends on implementation,” he said. – The Vibes, May 25, 2022
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