Pumping up more problems

2

MOST Malaysians expect to see the end of subsidised petrol price come June next year.

On Oct 27, in an unprecedented move, Second Finance Minister Datuk Seri Ahmad Husni Hanadziah announced that wage earners taking home below RM5,000 per month will still enjoy the fuel subsidy while those raking in over RM10,000 are no longer eligible.

He said the mechanism was still being studied in detail by the Domestic Trade, Cooperative and Consumerism Ministry.

“The first tier (below RM5,000) will be fully supported with 100 per cent subsidy; tier two (low to middle income) will get a partial subsidy while tier three (over RM10,000) will not get the subsidy.

“The implementation will be based on the individual’s salary – unlike BR1M which is based on household income,” he explained.

On how the government proposed to monitor the subsidy claimants, the minister said the entitlement for each car would be based on the registered owner of the vehicle. “A special body to verify the entitlement and monitor the implementation of the subsidy rationalisation scheme will be set up,” he disclosed.

However, implementation of the three-tier subsidy rationalisation scheme on the strength of monthly income has raised a lot of doubts as to how the system works.

It is not unusual for the government to announce something that it is not quite ready for, thus triggering much anxiety and doubt among the rakyat.

Earlier, Deputy Finance Minister Datuk Ahmad Maslan said the mechanism should be installed either through MyKad or other types of cards.

Regardless, we can assume our identity card – aka MyKad – will not just reveal who we are, where we live and how we look like but also incorporate data from the Inland Revenue Board on how much we earn.

Isn’t it scary? Yes, it is. Be afraid, very afraid, thesundaypost has been cautioned by professionals, including lawyers, accountants and auditors.

The truth is we may be unwittingly exposing ourselves to higher crime rates as every time we pump petrol, our income becomes public knowledge – quite unnecessarily!

The question on most people’s lips is what have all the near-ridiculous announcements brought for the public? We have gathered some questions raised by professionals, laymen and ordinary Malaysians in coffeshop conversations.

Now, consider all the talks about integrating the driving licence into MyKad. They have been going for many years, yet it has not been fully implemented.

Yes, BR1M has been distributed, notwithstanding the many loopholes. Yet into its third year now, we still hear about the system being abused.

By the same token, do the authorities know exactly how many Malaysians working in other countries are also getting BR1M?

Also, how much money will the government need to set up the three-tier petrol price system? The higher income group will want to know if it is fair to them. They say they have been paying higher income tax all this while and wonder whether the scheme  is tantamount to double taxation for them.

“Most of the higher income group work their way to the top and are forced to pay extra. Is that fair to them?”

Notably, the Federation of Malaysian Consumers Association (Fomca) said the government should note people of all income categories had been affected by rising living costs and were facing similar expenditure patterns as a result.

Hurdles expected in implementing proposed three-tier fuel subsidy system

“We can find out how much people earn but how do we estimate their expenditure? For example, a person who earns RM5,000 a month and has one child and another person who earns RM10,000 but has five children, have different levels of expenditure,” pointed out Fomca vice president Siti Rahayu Zakaria.

She said if the government wanted to come up with a card for people to purchase subsidised petrol, it should not only take household income into consideration but also total expenditure.

Of course, there are always hurdles in the way of the implementation of a scheme or a system. It is definitely not as simple as just installing three pumps with meters running for different petrol prices!

The peculiarities of Sarawak have to be overcome as well.

Stanley Tan, who helms Ministry of Domestic Trade, Co-operatives and Consumerism (KDNKK)Sarawak branch, told thesundaypost:

“There will be a meeting with the head of the rationalisation unit of KDNKK on the pecularities of the rural people in Sarawak. For instance, if the system is linked with JPJ for motorists to buy subsidised fuel, it will not fair to the rural folk as many of them, especially those in places such as Kapit, use motorboard engines and buy fuel for their gensets. These are all not linked with JPJ.

“There are instances where people in rural areas own vehicles without proper documents such as road tax and insurance. They must be given leeway, somehow,” he said.

On Friday KDNKK held a dialogue in Sibu with 38 mini petrol station operators from rural areas statewide.

Ministry deputy secretary-general Datuk Azmi Lateh told Peter Boon of The Borneo Post it was to get their feedback on the new fuel subsidy rationalisation scheme and he would visit mini station operators in Kapit later.

“The main objective of the engagement is to hear the views of the operators and obtain their feedback to ensure that when the scheme is implemented in time to come, it will create a win-win situation,” he told thesundaypost.

Among those present were Policy and Strategic Planning Section director Dr Noor Zari Hamat, deputy directors from Putrajaya Mohd Farizan Ahmad and Surrendren Sathasivam as well as Sarawak director Stanley Tan.Surrendren.

What can happen at the petrol stations

THE following scenarios are created to highlight some of the challenges the authorities may encounter when implementing the three-tier fuel subsidy system announced by Second Finance Minister Datuk Seri Ahmad Husni Hanadziah.

What if…

  • Producing payslip for salary verification.

Sir, may I have your payslip, please? Only those earning less than RM5,000 can pump from this machine which offers fully subsidised petrol,” kiosk attendant David queried.

“Ok ok, here it is,” replied John as he took out a crumbled payslip from his pocket.

“But sir, the IC number stated here shows a person of 24 years old. You look much older than that,” David said, sizing up his customer.

“What, you want to check my IC? Who are you? You are only a petrol attendant. Who gives you the right to check my IC? Just shut up and let me get some subsidised petrol,” rasped John, a 52-year-old contractor.

 

What if…

  • Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) (since the Ministry has been identified to come out with a mechanism to implement the system) working with Inland Revenue Department to issue Petrol Card based on individual earnings.
  • Those entitled to full fuel subsidy are given Green Petrol Cards while those with income between RM5,000 to RM10,000 being                                                          given Red Petrol Cards for identification purposes when purchasing fuel. No card for those earning more than RM10,000 and above.
  • No limit or quota set for fuel purchases.
  • Gas station assistants are to help monitor.

1

“Wow, that guy in over-sized shorts is driving a Kancil only but his income is more than RM10,000 per month but that young chap in black suit driving a Honda earns less than RM5,000. So hard to tell about people nowadays. The rich pretend to be poor, the poor pretend to be rich,” said Ah Kow, the petrol station assistant.

2

“You go serve that uncle, la. I don’t want to do it. He’s very fussy and mean. He holds only a Red Card but behaves as if he is some rich towkay,” said Ali, the petrol station assistant.

3

“Hey Salleh, you’re real smart. You made so much as an estate agent — so much more than I but you only have to report partial income. Now you are driving a RM150,000 imported car but you have a Red Petrol Card.

“Look at me — as a middle-ranking management person in a private company who obviously earn less than you, I’m entitled to a Green Petrol Card and I can only afford a Malaysian-made car,” said Ahmad.

4

“Boss, I have to request for a pay raise,” said Luke.

“Why, haven’t I paid you well? You have worked here for more than 20 years, we have never short-changed you. Every year, I give you increment,” countered Joe.

“I’m not sure about that. Yesterday, when

I got my petrol, I saw our new staff Ms

Mary, your secretary, who just joined us.

She has the same qualifications as I but yesterday, I saw her pumping gas at the

petrol station. She has a Green Card. That means she is making between RM5,000 to RM10,000. And though I have worked for you for more than 20 years, I am still using a Red Card. I insist on a pay raise or I will leave,” said Luke.

5

“Officer, my basic pay is RM4,500 and on average my overtime per month is about RM700 and my car maintenance allowance is RM450. Am I entitled to fully subsidised petrol,” asked Jerry.

6

“Frank, come have a look. See that sexy chick. Her earnings are more than RM10,000 per month,” said Timmy.

“That’s not surprising. Look at that old man there. He looks like a beggar but his motorcycle shop is raking in more than RM20,000 per month,” pointed out Frank.

Two weeks later, the old man’s motorcycle shop and sexy chick’s house were burglarised.

7

“Ah Lam, the Goddess of Fortune is blessing us. This is the beginning of a new era for our kind. I want you to go undercover at a petrol station. Identify all the rich people there for me. You can easily tell. Get their addresses right. We can pay them a visit when it’s convenient,” said Ah X, a small-time burglary ring leader.

8

“Steve, why are you quitting your job? How are you going to support our family,” asked Molly.

“I have a new job. Many working in my company have asked me to help them buy petrol because I have a Green Card. They all agree to pay me RM10 per service.

I have counted if I have 100 customers, then I can make RM1,000 per month already. Plus I think most of them have to pick their children from school and they need to pump petrol twice a month. So I figure I can easily make RM2,000 which is better than what I earn now as my boss’ driver. Once I quit, I can continue using my Green Card because I will be jobless,” said Steve.

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“Vic, can you go get petrol for my car? And also my wife’s Mercedes, my son’s sports car. Do it quietly for Mary as well? Why do we have to pay more for our petrol? My wife, my son and myself who are all directors in my company have already paid so much tax. We should not be double taxed.

“And make sure you go to different gas stations to get the petrol in case the petrol station assistants start to get suspicious,” said Peter, a managing director, to his driver.

What if…

  • Income information imbedded into MyKad — Inland Revenue Department (IRD) and National Registration Department are linked.
  • Retirees are entitled to fully subsidised fuel. MyKad needed to be produced and scanned to ensure entitlement.
  • Gas station assistants to ensure no abuse of system.

1

“Officer, you must help me change my income status on my MyKad. I used to own a gas station but I lost it in a football bet. My income has decreased from RM20,000 per month to no income at all as I am now unemployed.

“I want my income status changed so that I can be entitled to fully subsidised fuel,” businessman Jeff said.

John, an NRD officer, replied: “I’m sorry, we can’t do it here yet. Our system and Inland Revenue Department (IRD) have yet to be linked. You have to go to IRD to get it changed.”

2

“Dad, help me get petrol, please? You are a retiree and entitled to fully petrol subsidy whereas I am only entitled to partial subsidy,” Tom said.

“Yes, dad, can you also do it for me?” said Jim, Tom’s brother-in-law.

“Dad, I need your help too,” chipped in Mary, Tom’s sister.

3

“Sir, this is not your MyKad. Sorry sir, we can only sell fully subsidised fuel to those earning below RM5,000 per month. This MyKad owner deserves it but you are not the owner of the MyKad. Sorry, I can’t serve you,” said the gas station assistant.

“Well, I’m helping my 80-year-old mother get some petrol. This is her MyKad,” Mike said.

The gas station assistant replied: “I’m sorry, the new policy says only the MyKad owner earning less than RM5,000 and below are entitled. I have checked — this MyKad owner is a retiree and is entitled to full subsidy but you are clearly not the MyKad owner.”

“Ok ok. If you insist. I’ll ask my mother to do it herself,” Mike said.

The next day, Mike drove his car to the petrol station with his frail mother, asked her to move over to the driver’s seat on reaching the place before telling the station assistant to give his mother her entitlement – a full tank. Then he drove off after the tank was topped up with subsidised fuel.

 

What if…

  • Land Transport Department (JPJ) linking with KPDNKK.
  • The government decides to give fuel depending on the capacity of the vehicles. Cars with a capacity of below 1800 cc are entitled to full fuel subsidy; cars with a capacity of between 1800 to 2500 cc are given partial subsidy while no subsidy for cars with a capacity of 2500 and above.
  • No purchasing limit for anyone fully or partially entitled to subsidised fuel.
  • Gas stations well equipped with pumping machines which offer three different pricings for each type of petrol.

1

“George darling, since I am the only one in the family unemployed, perhaps all new cars you are buying now can be registered under my name so that I can help to buy full subsidised fuel. After all, I’m a housewife with no income,” said Mary whose husband is an owner of a chain of supermarket stores and her two children are highly paid professionals.

2

“George, perhaps we should not buy this car. A 3,000cc pickup is not entitled to fuel subsidy,” noted Mary.

“I have to. I travel so often and most times have to carry heavy load. I need that kind of car,” George replied.

‘That means we have to pay for unsubsidised petrol.  That’s very not fair. You earn less than RM5,000 and we have four children. We are now barely getting by each month,” Mary said.

George answered: “What to do? Some rich men driving a 3,000 cc car get the driver to top up and so are entitled to full petrol subsidy. People like us who really need a high-powered vehicle to transport equipment have to bear the extra burden of paying for unsubsidised fuel.”

3

“Matt, it’s ok. Let that guy pump in whatever he wants,” petrol station owner Johnson told his worker.

“Why boss? He is driving a 3,000 cc car — he should not pump at the dispenser that offers fully subsidised diesel,” Matt said.

Johnson pointed out: “Look at him, you know who he is? He is one of the biggest gangsters in town. If he’s not happy, he just sets fire to our petrol station. What can we do? And some more, the government is paying me for the amount of diesel I sell.

4

“Ah Mei, I think we need to let go of our multi-purpose vehicles and switch to Malaysian-made cars of smaller capacity,” Ah Seng suggested.

“Why, I like my car and you always complain Malaysian-made cars are ugly and not lasting,” Ah Mei replied.

A flustered Ah Seng shot back: “Aiya, you women know what? Now government changes its policy again. Big capacity cars can’t get any subsidy. So we must now all drive cars below 1,800 cc. I will get a Kancil for both you and Ah Siong.”

5 – In remote Sarawak

“Can I get five litres of petrol and five litres of diesel, please? Petrol for spare when I go

back to my village and diesel for my outboard engine,” Makai said.

“We can’t sell to you because the policy categorises customers into only three groups — owner of car below 1,800 cc, between 1,800 to 2,500 cc and above 2,500 cc. You are not in any of these groups. As I don’t know how to charge you, I can’t sell to you,” the petrol dealer explained.