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- Abolishing Toll Fare Collection Would Have Significant Financial Implications - Ahmad Maslan
Abolishing Toll Fare Collection Would Have Significant Financial Implications - Ahmad Maslan
According to deputy works minister Datuk Seri Ahmad Maslan, as reported by Bernama, proposals to abolish toll collection in the nation would require the government to compensate highway concession companies more than RM450 billion. This would have a significant impact on the nation's financial situation, he said.
“The [estimated cost] in 2019 to abolish tolls would require us to pay compensation to highway concessionaires over RM400 billion. The estimated cost now surely has increased, [and] I estimate it is around RM450 billion,” the deputy works minister said.
“We know that the national budget is around RM388 billion annually, [so] if we want to abolish tolls with a value of RM450 billion within that one year period, we won’t have salaries to give for other purposes. I don’t see tolls being abolished,” he added. Ahmad Maslan also stated that the Malaysian government pays highway concessionaires RM20 million every day in order to provide toll-free highway travel during holiday celebrations.
He also hinted at the possibility of free toll charges during the upcoming Hari Raya Aidilfitri celebration, Bernama wrote.
Prime Minister Datuk Seri Anwar Ibrahim agreed last month to a statement that there were too many toll plazas on highways surrounding the country's capital when he stated that toll concessions for highways around Kuala Lumpur can be renegotiated once the nation's financial situation improves.
Ahmad Maslan stated earlier, during the tabling of the bill's second reading, that the changes, which included 16 clauses in the Highway Authority Malaysia (Incorporation) Act 1980, were intended to strengthen the Malaysian Highway Authority's (LLM) role as a reliable, effective, and efficient regulatory body in alignment with the goals of the government, as well as enhance the LLM's capabilities.
According to the minister, the government would not face any financial consequences from the act amendment or an increase in the toll rates set forth in the concession companies' contract with the government.
Twelve members of the government and opposition to the bill took part in the debate, and it was later passed with more votes in favor.
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Anis
Previously in banking and e commerce before she realized nothing makes her happier than a revving engine and gleaming tyres........