I am still infuriated by though inadvertent fact of petrol subsidy reduction that can be better implemented gradually, instead of one nuke on the people.
Palm Oil related companies might need to pay so called windfall tax due to the fact that they are earning too much because the commodity prices escalating too fast too furious. That's good, government got more money, then possibly more marginal benefits can goes to the people, after netting the corruption "tax".
Then, the government only want to subsidize the people RM0.30 per liter of petrol. Now the government even got more spare cash to "waste", breeding a new batch of white elephants since those creatures from previous batch are missing-in-action or shoot in the forehead and dead.
So I darely suggest to our profit maximizing beloved (Big Bang Theory catch line: Do I need to hold a plate written "Sarcasm" every time I mean that?) management to levy windfall tax on crude oil related companies especially those companies that directly generating economic benefits from extracting, refining and selling petrol.
Commodity-linked companies are penalized because they benefited from commodities that grows on Malaysia soil.
The thing is I'm confused. Most commodities like palm oil, rices and etc are RENEWABLE, though the process is tedious. However, for crude oil/petroleum, it is practically NOT RENEWABLE and thus it is definitely a significantly more valuable national treasure. Why the government just let Petronas paying 27% taxation just like any other companies? Why at all this segment of country resource utility need to be privatized? Frankly speaking, every drops of petrol from this land is belong to the sovereignity of Malaysia.
Why Petronas be exempted, why the double standard here?
In Year 2006, China imposed a similar taxation structure for domestic and foreign invested upstream petroleum exploration enterprises and joint ventures.
Check it out
Latest update on China's Windtax tax on the petroleum industry, Click here
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