Wednesday, November 19, 2008

Maths calculation worth pondering

First equation (Petrol)

1 barrel of crude oil produces 159 litre of petrol.

Current world crude oil price = USD$55
Let's multiple with 3.5 (exchange rate of US Dollar to Ringgit Malaysia)
= RM196
159 litre = RM196
1 litre = RM1.23 per litre.

Government informed us that we are being subsidised by 30 cents per litre for our petrol price.
Therefore, it's RM1.23 - 30 cents and it's 93 cents per litre.
We are paying whooping RM2 per litre! (Do calculate by your own and see)
Source

Second equation (EPF)
Assuming that average salary is RM4K

If our monthly contribution is 11% (RM440), taxable income is RM3560, income tax payable = RM77
If our monthyl contribution is 8% (RM320), taxable income is RM3860, income tax payable = RM109

If you're choosing 8% contribution, you'll end up paying more tax to the government and it'll make them richer. Okay, the government will say that the money is used to boost up the country's development and so on, but how true is that? Let us just wait and see then. Government that doesn't have the best interest of the people in mind.. interesting..

Source from email

Disclaimer: The first equation make sense since the calculation is based on the exact current world crude oil price versus current Malaysia petrol price. The second equation does not make sense after several discussion with my colleagues.

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