Let’s discuss this scenario. Last year, the fuel subsidy by the government amounted to ~ RM15 billion while the car excise duty collected is ~ RM 7 billion.
Imagine this Scenario:-
– Remove fuel subsidy and excise duty. Cheaper car but more expensive Fuel. The government will save money on fuel subsidy and we save money by getting cheaper cars. Will you be OK? Or you want cheaper car and cheaper fuel?
– If we have cheaper cars – would you buy more cars and make the traffic bad or you will buy a better quality and safer car? and use the extra cash for other spendings?