Saturday, November 29, 2014

Will taxes on vehicles drop as well?

Now the burden on rakyat to claim that we are the ones that causes inefficiencies to government spending as the bulk of government's expenditure is on subsidies is soon over. Petrol is going to be on managed float from 1 December 2014 which means that there is very little and no subsidy from the government at all.

At last, I feel that this is one of the best decision to be made by the government as we have been doing all the wrong things in the automotive, transportation policies. We have subsidies on petrol and diesels, but high taxes on vehicles, lots of tolled roads.

It is time to reverse that, by eliminating subsidies, reducing taxes as it have been burdening the people. There is no doubt that the high car prices and many years of financing (up to 10 years) for cars is a burden and indirectly causes consumption borrowings to be high. By reducing taxes on cars, it also means reducing on borrowings for the people. Forget about those who will own more than 1 car per person. That's a small community. It is time to reduce burden on people with high borrowing costs on cars especially to the youth in which probably car is the first ever significant debt for them.

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