New Fuel Subsidy System Will Exclude The Rich

Anis

22 May 2023 at 11:30 AM

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The targeted subsidies for RON95 and Diesel are set to start next year.

With the implementation of targeted fuel subsidies for RON95 petrol and diesel next year, those in the T20 group will no longer be able to reap benefits intended for lower and middle income earners, according to Datuk Seri Ahmad Maslan.

According to the Deputy Finance Minister, more than RM50 billion was spent on subsidising fuels such as RON95, diesel and petrol, which were enjoyed by all Malaysians, including the T20 group. The implementation, according to Ahmad Maslan, is used to close the gap between the rich and the poor in Malaysia. The T20 group is capable of paying more for petrol than those in M40 and B40 who drive smaller cars and even ride motorcycles. "We do not want the wealthy to benefit more than the poor. They are already getting more with their larger vehicles due to the RON95 subsidy of RM2.05 per litre”, he added. He went on to say that the current subsidy mechanism must be fixed right away to ensure that it reaches its intended audience of lower and middle-income earners. "However, bus operators, including school buses, will continue to receive diesel subsidies because we do not want to see them raise their fares, burdening the people," he said. Ahmad also claimed that by eliminating electricity subsidies for businesses and corporations between January and July of last year, the government saved RM4 billion.

"This is why we are looking into putting in place a proper subsidy system so that the revenue we save can be returned to the people." "The government can construct additional hospitals, clinics, and schools," he added. Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub said on Thursday that targeted fuel subsidies for RON95 petrol and diesel would begin next year. He stated that the National Economic Action Council (MTEN) agreed in a meeting on Wednesday to create an integrated database to ensure the initiative's effectiveness.

Salahuddin went on to say that the talks included his ministry, the Finance Ministry, the Transport Ministry, and the Investment, Trade, and Industry Ministry. "All agencies and ministries already have their own databases; all we need to do is coordinate and ensure they are accurate and effective when it (targeted diesel subsidies) is implemented," he said. Prime Minister Datuk Seri Anwar Ibrahim announced on Monday that the government has implemented a subsidy targeting programme in stages, beginning in January 2023, when the government will no longer provide full electricity tariff subsidies to large companies that use a lot of electricity. He stated that targeted and sustainable subsidy management was a top priority in ensuring that government spending is directed towards development needs that add more value to the national economy.