Thursday, February 18, 2010

Beware of Retarded Subsidies -1st May 2010

I read this in the news just a few days ago:

New Fuel Subsidy Plans Beginning 1st May'2010

I couldn't help but feel a bit annoyed at the whole idea. Sounds completely stupid if you ask me.

Fist of all, other than the obvious congestion problems already pointed out in the report, those brilliant buggers in the government propose that everyone use their MyKad to buy petrol. Everyone has to register their MyKad to the car they drive. The logic being that if you're a rich dude, you won't get subsidized. If you're not so rich, then OK, you get petrol at RM1.90/litre.

Let me give you 3 reasons why this is retarded.


#1 The MyKad is the cheapest, crappiest piece of plastic ever be produced by the government. Take your MyKad out and give it a bend. MRT cards in Singapore are better made than our Mykads I tell you. And what about the microchip? Mine failed for no good reason, and couldn't be read in banks, immigration checkpoints or even ATM machines. It's poorly made by some cheapo manufacturer that the government designated. No one ever uses their MyKad as a TnG, ATM facility or driving license because they know it's UNRELIABLE. And now we're supposed to buy petrol with it? So if my MyKad fails (again), do I need to take the bus?

#2 Rich people are smart. They don't pump their own petrol. Their drivers do. AND, they probably don't own the car directly. They do either through a holding company or something. Who's MyKad are you swapping at the petrol kiosk? Ever thought of that yet? What if the driver is a low income guy driving a big car owned by his boss? What if someone's driving their dad's car? Will the subsidy be linked to the drivers income, the car owners income or the car capacity? And how do you prevent the person qualified for a subsidy from driving his rich boss / brother / neighbour's car to pump it up for them, and earn a small commission? What if a rich guy buys a small car in his own name, but pumps into his limo owned by the company (that he owns). HMMMM???

#3 Your economic status is free for all to read. If the MyKad can be used by the Petrol Station to identify your income tier, doesn't that automatically give them a database of names and income range? Where is this information coming from? The income tax department? The bank? Do we really want people to know how much we earn? Isn't that strictly confidential? And what about the traffic police who stops you for jumping the red light? Will HE get to know how much you earn once he asks for your MyKad? And we all know what can happen if Mr. Traffic Officer knows you have a generous income. People get thirsty for coffee.

And those are just some reasons at the top of my head. Imagine how long this list will be if people actually sat down and thought this through properly. But I guess that's something our government hasn't had time to do, what will all this important developments on sodomy trials, 'Allah' issues and debates on whether Beyonce should be allowed to perform here. It's funny how the papers report lurid details of Anwar Ibrahims alleged homosexual rendezvous, down the the brand of the undies worn, but won't even reveal the name of the government political secretary that was caught red handed with 2 million dollars cash in his apartment.

If the issue is smuggling of petrol out of the country, why can't we step up the border control across Thailand to prevent smuggling? Limit the percentage of petrol Thai vehicles can carry in their tanks going out the country, just like in Singapore. We don't need some sophisticated subsidy system at the pump, just for the immigration borders to do their job better. Beef up the guards along the border. We have a military right? Last I checked, Malaysia wasn't in any war, so I'm pretty sure them soldiers could spare a bit of time guarding our border. Oh wait.. they can't. They're busy selling off our jet engines in Uruguay.

If the issue is about ensuring subsidy only for the poor, then gradually cut back on the subsidies across the country. Everyone buys it at the same price. There are something called receipts right? Receipts can be tied explicitly to each car, not the driver. Let the owner of the car file in their petrol receipts yearly or quarterly to the tax department to receive a cash back in lieu of their eligibility for subsidy. That way, those who can afford it will not receive it, and those who need it WILL.

It's probably not perfect, but doesn't something along those lines sound a bit more logical at least?

The government keeps talking about how they want to prevent non deserving people or foreigners from receiving subsidies on petrol. It is after all the tax payers money and should be spent wisely. Spent wisely, I agree. But implemented stupidly? I don't. If this proposal goes through, are they going to set up a nation wide electronic system to monitor petrol buyers which would cost millions? And WHO I might ask will be the beneficiary of such a contract to implement this? HMMM??

1Malaysia Boleh...... macam macam pun boleh la...

Consider yourselves warned people.

:-S

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