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Apr 16, 2011
Cheaper petrol can be a problem
MANY people prefer to debate why petrol prices across the Causeway are cheaper rather than consider the implications of cheaper fuel ('Fuel competition' by Mr Lewis Goh; April 6).
Singapore has a petrol tax (currently fixed at 44 cents per litre) to discourage car ownership. As my family prefers to travel largely by public transport rather than drive, I have gained from the tax. Thanks to the tax, the Government has had the money to spend on MRT projects.
By contrast, Malaysia has problems subsidising many daily necessities, including petrol. The only reason it can subsidise petrol is that it has its own oil fields.
Given its tight budget, Kuala Lumpur has issues developing its mass rapid transit system now as the estimated price tag of more than RM36.6 billion (S$15 billion) is sending shockwaves.
If Singaporeans believe that with cheap petrol, the cost of living in Malaysia is low, the harsh reality is that the daily cost of living in Malaysia is higher than in Singapore.
It is not surprising that the tax regime in Malaysia is high with corporate and income tax at up to 25 per cent and 26 per cent respectively.
Do Singaporeans want a government that imposes higher taxes to subsidise residents?
Cheaper petrol is more than just a question of lifting the three-quarter tank rule.
Tan Pang Soon
http://www.straitstimes.com/STForum/Story/STIStory_657415.html
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16Apr2011: Cheaper petrol can be a problem
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