RM250 million savings from reduction in road tax is only a RM10 New Year gift for every Malaysian when 27 million Malaysians are seeking yearly RM2,000 each from Petronas profits

Press Statement

by Lim Guan Eng

(Petaling Jaya, Monday): Deputy Prime Minister Datuk Seri Najib Tun Razak’s announcement of a 2007 New Year gift in the form of reductions in road tax, which will save Malaysians RM250 million per year is inadequate and insincere in trying to help reduce the financial burdens of Malaysians facing rising inflation. What the people require is reduction in fuel prices. What is RM250 million from reduction in road tax when it is only a RM10 New Year gift for every Malaysian when 27 million Malaysians are seeking yearly RM2,000 each from Petronas profits?

Last year the pre-tax profits for Petronas rose 21 per cent to RM70.2 billion compared to RM58 billion in the previous financial year. Net profit rose 22.6% to RM43.6 billion from RM35.6 billion. In comparison, the net profit of Malaysia's largest listed company Malayan Banking, was just RM2.5 billion. So huge are Petronas profits that if every Malaysian were to be given an annual oil revenue windfall of RM2,000 each, Petronas would still have enough money to continue running its operations.

What is RM 10 in reduction from road tax annually as compared to RM2,000 in oil revenue windfall? For BN and Najib to try to show how generous the government is by reducing road tax to offset the 20-60% rise in toll rates in 5 Klang highways beginning today, is an exercise in deception that will not convince Malaysians.

Ordinary Malaysians, especially low-wage earners, want to have a share in the oil revenue as oil belongs not to one company or individual but to all Malaysians. There is no reason why an oil importer country like Singapore can give out S$2.6 billion(RM 6 billion) last year despite not producing a single drop of oil.

Something is very wrong that Malaysians have not received a single cent in oil revenue since Petronas was formed in 1974. What happened to the total revenue earned during the past 32 years by Petronas amounting to RM500 billion or RM20,000 per Malaysian?

Najib and the BN government should have more respect for the people if they think that Malaysians are so simple and gullible as to be grateful with this miserly road tax reduction which will save them on average RM10 per year. The reduction that the people wants are cuts in fuel prices. Instead of concentrating on the minor matter he should address the major demand by Malaysians of a share in Petronas profits.