Simplify RON95 subsidy by imposing petrol levy on T15 group - Former BN strategist

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The government is advised to impose a petrol levy on the wealthy (T15) upon road tax renewal, rather than complicating the system with a two-tier pricing method for RON95 subsidies. - File photo

Previously, Rafizi had announced that the government was refining a mechanism to implement a two-tier pricing method for targeting the RON95 petrol subsidy.

SHAH ALAM - The government is recommended to impose a petrol levy on the wealthy (T15) upon road tax renewal rather than complicating the system with a two-tier pricing method for RON95 subsidies.

In a recent Facebook statement, former Barisan Nasional (BN) communications strategist Datuk Eric See-To warned that the administration's plan to abolish the RON95 subsidy for the T15 group would lead to unnecessary complications for both petrol stations and consumers.

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"This is a less wise idea that will complicate petrol stations and consumers when refuelling and increase costs in the process of selling petrol.

"Why should 85 per cent of the population and petrol stations be complicated just to impose on 15 per cent (the T15 group)?

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"If the government has already identified who the T15 are, why not just impose the petrol levy on this group when they renew their road tax?” he questioned.

As an administrator of former prime minister Datuk Seri Najib Razak's Facebook account, See-To also engaged with the Economy Minister, Rafizi Ramli, during the ‘Yang Bakar Menteri’ programme on Sept 30, where they discussed the nation’s economy.

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Previously, Rafizi had announced that the government was refining a mechanism to implement a two-tier pricing method for targeting the RON95 petrol subsidy.

In light of the proposed petrol levy, See-To suggested that the government charge the levy based on the T15 group's annual fuel consumption.

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"If the T15 fills up with 50 litres per week or 2,500 litres a year at a subsidy rate of RM1 per litre, then the government can impose a petrol levy of RM2,500 on the T15 vehicle licence.

"If they truly belong to the T15 group or can afford to buy cars worth more than RM300,000, I think it is not a problem for them to pay RM2,500 per year for each of their vehicles,” he said.

See-To stressed that this approach would allow the government to maintain a single subsidised petrol price at petrol stations while still recovering funds to cover the subsidy costs for the T15 group.

He also proposed that another method could involve using Budi Madani for diesel pricing, which would be floated, while ensuring that 85 per cent of Malaysians remain eligible for monthly payments.