GOOD IDEA! Abolish road tax, cut insurance rates for cars under 2,000 cc - petrol dealers

KUALA LUMPUR - The Petroleum Dealers' Association of Malaysia (PDAM) has proposed that the government abolish road tax and reduce the insurance rate for cars with engine capacity of less than 2,000cc.

Its President Datuk Hashim Othman said the government should be sensitive of the needs of the lower- and middle-income groups so that they are able to adapt to the country's current economic situation.

"I hope the savings obtained from the reduction in fuel subsidies can be channelled to the abolishment of vehicle road tax and reduction of insurance rate," he said during 'Helo Malaysia' programme on Bernama TV Wednesday.

He said local economists had long considered the alternatives to reduce the burden of the rakyat and this move needed to be implemented so that the rakyat do not feel the burden and are not oppressed, which could lead to a hatred for the government.

Last Tuesday, Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar said the reduction in fuel subsidies would result in savings of RM3.3 billion for the government which could be channelled to the 1Malaysia People's Aid (BR1M) scheme and used for infrastructure projects.

RON 92 may not be a good idea

Commenting on the proposal by the Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC) to re-introduce RON92 petrol into the market, Hashim said he was not sure if there were vehicles still using that petrol.

"Now, cars cannot use the RON92 petrol as many people are using new cars that are not suitable for that petrol (RON92)," he said.

Hashim also said to re-introduce RON92 fuel, petrol station operators also had to fork out additional cost to increase fuel tanks and pumps for RON92.

"The effects of using RON92 are also not good for the environment," he said.

Earlier, MDTCC Minister Datuk Hasan Malek said the government is studying the possibility of re-introducing RON92 petrol, which is much cheaper, as an alternative fuel for consumers.

Meanwhile, Executive Secretary of Malaysia Muslim Consumers Association, Datuk Nadzim Johan said the government must also take stern action that could give the 'fear factor' impact on business owners who raise product prices exhorbitantly following the hike in fuel prices.

He said this was to ensure that whenever there is a hike in fuel prices, it is not a normal practice for businesses to also increase the prices of their products and services.

He also urged the government to look for mechanisms to ensure that the subsidies were only given to the middle- and low-income earners.

Apart from that, Nadzim said the rakyat must make adjustments and adapt to the situation by reviewing their household spending according to priorities and needs.

-- BERNAMA