In Putrajaya!
According to the Malaysian Association of Automobiles (website: www.maa.org.my ) , a total of 487,000 vehicles were registered in 2007.
Doing a simple math: Assuming the average price of the vehicle was RM50,000 , and the average tax is 33% of the price, the total taxes amounted to RM8 billion. That’s right, it’s RM8,000,000,000. This is a very conservative estimate. Even then, it’s a whole lot of money. Where has it gone to?
Well, let’s see: Govt Allocates RM5.8 Billion For Staff Quarters In Putrajaya
That’s RM5.8 billion of the RM8 billion down the drain or should I say swamp?
Now you know why the Government always wins the parliamentary seat in Putrajaya?
If you want to recover some of the taxes paid on the car you bought, you should join the civil service and get yourself subsidised accomodation. Now, why is no one making a fuss about this subsidy?
The Government has been making a song and dance about how many billions of Ringgit it costs to subsidise motorists. With full page advertisements and billboards everywhere reminding all motorists how generous the Government is. With tagline like: Cheapest petrol in the region, etc etc.
This is typical of the Government - propaganda based on half truth and selected facts, not the full picture!
Are motorists really being unfairly subsidised at the expense of people who don’t drive?
I am sick and tired of hearing all these irresponsible one-sided lies.
Let’s do some math.
We’ve all heard anecdotal evidence that cars in Malaysia are among the most expensive in the world. But do you now how much of the price of each car is paid to the Government as taxes? Based on the latest National Automotive Policy, the lowest excise tax rate for a sedan is 70%. Take one of the cheapest cars in Malaysia, the Proton Saga, which retails at around RM30k. Around RM10k is paid to the Government in the form of excise duty and another RM3k as sales tax.
Assuming the following:
1) This car consumes around 5 litres of petrol for every 100km.
2) The driver makes around 15,000 km per year.
3) The subsidy per litre of petrol is RM0.50.
Total petrol consumed in1 year = 15,000/100*5 = 750 litres
Total subsidy = 750*0.5 = RM375.
If he drives the car for 20 years, the total subsidy he would have enjoyed is RM375 * 20 = RM7,500.
Even on an undiscounted basis, he would not have recovered the taxes he paid of RM13k upfront.
If we apply this formula to bigger and more expensive cars, with the most expensive duties up to 165% of cost, there is no chance that the taxes paid on any car can ever be recovered via subsidy.
So can whoever is talking about fuel subsidy please shut up!
I am all for removal of fuel subsidy, but please remove the taxes as well.
It’s about time the rakyat enjoy decent transportation, instead of being forced to ride on Malaysian made motorbikes (even this has a 20% excise duty!!) and Protons.
By the way, I wonder where all the taxes go to? That is the story for another blog…