Double Standard within a Nation??

KUALA LUMPUR: The Government is re-looking the principle behind the fuel subsidy to ensure the rich pay their share while the poor are not affected.
Deputy Finance Minister Datuk Dr Awang Adek Hussein said a task force had been set up under the Finance Ministry to study the proposed new system and would focus on the subsidy allotment.

A sticky situation: As oil prices surge, the Government is finding it harder to continue subsidising prices. The Finance Ministry is now drawing up plans to make the rich pay more for other automobile-related items and use that money to keep fuel prices down.A Government source said that under the present system the rich paid the same as the poor and this was unfair and regressive.
It is learnt that the task force is looking into the mechanisms that are needed to make the system more progressive.
“This may mean that the present subsidy level is maintained but the rich could be taxed in other ways,” said the source.
Among the mechanisms being looked into is increasing road tax – the owner of a luxury high-powered vehicle could be made to pay a much higher road tax, thus off-setting the subsidy they receive.
“Taxation is progressive because you pay according to how much you earn. Even the electricity tariffs are progressive because the more you use, the more you pay,
“The principle behind the fuel subsidy should also be the same – the poor should enjoy the most and not the rich,” said the source.
On Friday, Prime Minister Datuk Seri Abdullah Ahmad Badawi announced that the Government was reviewing the subsidy because it was costing the Government too much, especially with the rising crude oil prices internationally (see chart).

In the United States, the price of petrol changes according to market conditions, whereas in Malaysia the price of petrol is fixed for the consumer due to government subsidies. — AP“We cannot afford to go on this way. What we are doing is like being suicide bombers. Killing ourselves like this is stupid,” Abdullah said in his winding-up speech at the close of the Umno general assembly on Friday.
Umno deputy youth chief Khairy Jamaluddin, who first broached the subject when debating the economic resolution, said the subsidy must reach only the people who most needed it and to do it the present way was a misallocation of funds.
M&A Securities head of research Wee Kim Hong said it would be a balancing act for the Government to come up with a mechanism that works.
“If the Government wants to tax the rich through other means like road tax and not do away with the subsidy, then one must find a level where the rich are willing to pay and not resort to smuggled products.
“If the Government wants to create a two-tier subsidy system, then there will be an implementation problem,” he said, adding that fuel price increase was inflationary as it affects the cost of most other consumer products.
Wee said that whatever mechanism the Government chooses, it should have the consumer in mind.
Mydin Mohamed Holdings Sdn Bhd managing director Datuk Ameer Ali Mydin went a step further and suggested getting rid of all subsidies.
“There is no doubt that we have to subsidise certain sectors, but how it is done has to be thought out carefully. Right now there is a lot of wastage, especially in the form of diesel subsidies,” he added.
Ameer believes that petrol subsidies could and should be removed but done so gradually over two years.
“Frankly, there should not be a subsidy for petrol, because there is already an automatic mechanism (of apportioning costs). If you use more of it, you can afford more – it’s already there,” he said.
He lauded the announcement made by the prime minister, which shows that the Government is not fearful of doing this with elections just around the corner.
“It is better to act sooner rather than later. This shows they are serious and are thinking over the long term,” Ameer said.
Federation of Malaysian Consumers Association secretary-general Muhammad Shaani Abdullah, who supports the move to do away with the subsidy, said the money spent on subsidy should be used to beef up the public transportation system, as people would naturally resort to it when fuel price rises.
“Instead of giving the subsidy, the Government should use the subsidy to provide better healthcare, education and increase the wages of the poor people by setting a minimum wage standard,” he said.
The Petroleum Dealers Association of Malaysia president Datuk Zulkifli Mokti warned that whatever mechanism implemented should close loopholes to prevent cheats.
“How do you stop the lower-tier beneficiaries selling to those in the higher tier? Because of the subsidised prices, people living along the borders are coming to Malaysia to buy the fuel here,” Zulkifli added.


My COmments!@
Double standard in one nation? Arent we tax for how much we earn? Unless some morons can evade tax and say it loud "I no need to pay tax!!".. thus, the rich pay more tax, which is contributing more money, hence receiving his share of subsidy in fuel more; whereas the poor, pays less tax and receives less fuel subsidy. Isnt that fair? Practicing DOUBLE standard in a nation!..that's really a uneducated way of thinking, and that is really UNFAIR!..

The next question here is, how are u gonna differentiate the rich and the poor at petrol stations, where consumers get their petrol? Are the rich labelled "I am RICH" on the head? Classify their vehicle type and class? Luxury cars pays more for fuel? Stupid! thats really stupid!..richs can buy more PROTONS, up to an unimaginable amount, hire many drivers and line it up at stations...or even use the highest class of "poor people's car" and use that car all the time, enjoy low prices and remain RICH...

Cant stand fuel subsidy? "What we are doing is like being suicide bombers. Killing ourselves like this is stupid" - Badawi... One very GOOD question here, isnt the government earning more as the world fuel price increase? this should be in turn used to subsidy our own fuel consumption...since our fuel here is of higher grade and can sell at a better price than what we are currently using our ownselves. Where does all the money goes? Ask those who gives this statement...Gives this "GOOD" idea to practice double standard within a nation...

Something that really makes me furious here..Who are the ones using luxury or even SUPER LUXURY cars? with big roaring engines up to 5000-6000 cc? WHO?? ALL those MINISTERS, chauffered in BMW 7 Series, Mercedes S-Class, Jaguar, Land Cruiser Lexus V8, government departments vehicles, Customs and Excise Vehicles, "QSG" vehicles with big roaring engines!.. who? U tell me who are owining or even using luxury vehicles? Do they need that? and the point here, We are all told to LOVE our nation by BUYING LOCAL GOODS!.... Is PROTON LOCAL GOODS? or is it RUBBISH? Ask the people to invest in local goods, full of problems..and their own servants are enjoying SUPER LUXURY cars! Consuming the most fuel of all..and yet the Prime Minister is saying that subsidising is like suicide bombing? Its like he is supplying the bombs, asking his servants to BLOW UP the nation, and tell the world that his people are suicide bombers, destroying the nation...Is that LOGIC? Want to reduce subsidy, PULL BACK all your LUXURY vehicles and ask them all to LOVE THEIR NATION, USE PROTON LA!!!

LAND CRUISER V8 = 4800 CC, V8 engine
BMW 745Li = 4400cc for V8, 6000cc for V12 engine
Proton Perdana = 2000cc V6
Waja = 1600 cc, 4 cyl in-line engine

Now tell me, who is consuming the most? one engine on those first 2 on the list, is equals to 2 engines on the later 2.... Think urself.. Who should pay more? Its okie for those who really need to be chauffered in those cars to have it...but having so much? is it necessary? do we really have to show that we are rich? if we cant even stand the fuel price we are paying?

Our National Automotive Policy - promotes ppl, lure ppl to buy Protons, buying new cars, by giving low interest rates on new cars, high rates on used cars..is destroying us..!! this is the thing that is really destroying us! What for luring people to get so many cars? what is the public transport for? though its not properly planned, and in some places, its totally like shit!..
Simple theory:
More Cars = More Engines = More fuel consumption = more Subsiby Needed = SUICIDE BOMBER according to the PM..

So? how? Ask me? I think the government should clean up this mess they created... Ask their servants to use proton, to show their own commitment and to reduce fuel usage, impose more tax on vehicles with big engines while bring in hybrids, let PROTON ROT...it will, if always protected, it will either learn its lesson, progress well with others, or ROT and disapppear from the surface of the earth...Hybrids will reduce ur fuel subsidy dramatically if everyone uses it, made possible by no tax and even subsidy.. Last, by implementing double standard, U ARE BLASTING UP THE NATION....by creating a very subjective part whereby how the RICH are identified...more fraud will be committed..!