Tuesday, May 20, 2008

Fuel subsidy revamp on the cards

In an article appeared in the Star on 19 May 2008, the government is planning to restructure fuel prices. I feel they are bias - to brainwash the rakyat - saying we are enjoying a very good life comparing to neighboring countries by benchmarking the prices of essential items. Nonsense.

What a convenient way! If you look at the table, based on a-dollar-earned-to-a-dollar-spent, Singapore prices are quite competitive. What our government has been hiding from us is the personal income tax. Singapore has such a low income tax rate. Additionally, their government distributes shares with regular dividends to their citizens returning their surplus. Two thumbs up from me!

What if we compare that to Malaysian personal income tax rates? It's almost day and night, isn't it?

Let me pick Thailand as another example. I am sure their allowances are much more generous compare to Malaysia on top of generous taxable rates.

What am I trying to say? Be fair - if you want to raise prices, please reduce personal income tax rate also! We cannot continue to pay the price of our government inefficiencies. Benchmark Singapore government - generate surplus - not taxing its citizens and raise prices. There are many ways to skin a cat. I'm not impressed - both government and opposition need to look at it harder.

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