Sunday, June 15, 2008

Will You Do This, MR. ONG?

With the fuel price gone up, it is almost impossible for someone to buy their favorite car. That's because that close half of the price is charged by the Customs Department, called the Import Tax. This measure was applied to cars because of promoting the use of Proton / Perodua cars. Now that the thing has gone up, perhaps:

Source: from an e-mail

As of last month a Toyota Vios would 'cause a damage' of about RM 89,000. In the international market, a Toyota Vios is about USD 19,000 USD 19,000 = RM 62,700 (using the indicative rates of USD 1 = RM 3.30) That makes Malaysian Vios owners pay an extra RM 26,300. This RM 26,300 should be cost of operations, profit and tax because the transportation costs have been factored in to the USD 19,000. RM 26,300/ RM625 petrol rebate per year translates to a Vios being used for 42.08 years.

The RM 625 is a rebate given by the government, but it also means that one has to use the Vios for 42.08 years just to make back the amount paid in taxes for the usage of a foreign car. Would anyone use any kind of car for that long? Now with these numbers in front of us, does the subsidy sound like a subsidy or does it sound like a penalty?

This just seems to be a heavy increment in our daily cost of living as we are not only charged with high car taxes but also with a drastic increase in fuel price. With all the numbers listed out, let's analyze the situation further. Car taxation is government profit, fuel sales is Petronas' (GLC) profit which also translates into government profit. The government may ridicule us Malaysians by saying look at the world market and fuel price world wide. Please, we are Malaysians, we fought of the British, had a international port in the early centuries (Malacca), home to a racially mixed nation and WE ARE NOT STUPID!!!

We know the international rates are above the USD 130/barrel. We understand the fact that the fuel prices are increasing worldwide and we also know that major scientist are still contradicting on why this phenomenon is happening. Some blame Bush and his plunders around the world and some blame climate change and there are others which say petroleum 'wells' are getting scarce.

Again we go back to numbers to be more straight fwd

1 barrel = 159 liters x RM2.70/liter = RM 429 or USD 134

On 1 hand, we are paying the full cost of 1 barrel of crude oil with RM2.70 per liter but on the other hand the crude oil only produces 46% of fuel.

Msia sells crude oil per barrel at USD130 buys back Fuel per barrel at USD134. And not forgetting, every barrel of fuel is produced with 2 barrels of crude oil.

1 barrel crude oil = produce 46% fuel (or half of crude oil), therefore
2 barrel crude oil = approximately 1 barrel fuel
In other words, each time we sell 2 barrels of crude oil, equivalently we will buy back 1 barrel of fuel.

Malaysia sell 2 barrel crude oil @ USD 130/barrel = USD 260 = RM 858 then, Malaysia will buy back fuel @ USD 134/barrel = RM 442/barrel Thus, Malaysia earn net extra USD 126 = RM 416 for each 2 barrel of crude sold/exported vs imported 1 barrel of fuel !!! (USD 260-134 = USD 126 = RM416)

So where this extra USD 126/barrel income is channeled to by Malaysian Govt?

Yes, this is addressed to the current minister Ong Tee Keat. Thankfully, he's not related to the two Ong brothers that we knew back in Lenggong. Right now, he bears the portfolio of the Transport Minister. Last week, he spoke of reducing taxes in service and government taxes as the MCA man. That's a nice first step. But in your capacity as this, you need to have the 'testicles' to propose the removal of import duties. Where has those import duties gone to now?

Say it out an loud to the Customs department and your UMNO / BN colleagues that this is PART of helping the people out. People have trouble buying cars because of this import taxes. Help to get people a chance to own a car without having a huge amount on taxes.

I look forward to seeing how it plays out.

If you don't, someone told me of the 'hidden secret' of how you won that Pandan Parliamentary and it could be out anytime on discretion.

1 comment:

  1. Eh, isn't this under MITI's purview?

    Nothing to do with Transport Ministry.

    Remember Rafidah?


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