PARLIAMENT | Owners of luxury vehicles will not enjoy the targeted petrol subsidy even if their car engine capacity is 1,500cc and below, the Dewan Rakyat was told today.
Finance Minister Lim Guan Eng said his ministry was studying and fine-tuning the subsidy mechanism, including the type or model of cars eligible for the subsidy scheduled for implementation in the second quarter of 2019.
“If there are luxury cars which are 1,500cc and below, the owners still won’t be eligible for the targeted petrol subsidy.
“For example, luxury cars like Mercedes, BMW, Range Rover, Audi or Volkswagen which are 1,500cc and below will not enjoy the subsidy,” he said in reply to a question from Abdul Azeez Abdul Rahim (BN-Baling).
Hence, he said there was no issue of luxury cars also enjoying the targeted petrol subsidy.
Commenting further, Lim said the implementation of the subsidised RON95 petrol would benefit four million car owners and 2.6 million motorcycle owners.
Lim had announced during the tabling of the Budget 2019 that the government would re-float the RON95 petrol price via the Automatic Price Mechanism from next year.
However, in a move to ease the burden of the lower income group, the RON95 petrol subsidy of 30 sen per litre will be limited to 100 litres monthly for cars and 40 litres for motorcycles.