'T20' fuel subsidy cut: High income does not mean rich, DAP MP tells govt

 

A DAP MP reminded the government that income bracket labels do not necessarily reflect a person’s actual financial circumstances.

In a statement today, Kepong lawmaker Lim Lip Eng stressed that any plan to remove the full fuel subsidy for those in the T20 high-income group must be supported by a sound and effective mechanism.

He said the government must not make the mistake of looking only at income while ignoring real-life expenses.

Lim also urged the government to first explain the full mechanism clearly, including who will be affected, how income will be assessed, and whether household burden, living costs, dependants, loans and daily travel needs will be taken into account.

“The government cannot throw around labels like T20, T15, T10 or T5 and expect people not to panic.

“High income does not mean rich. A household above the national T20 line may still struggle badly in Kuala Lumpur, Selangor, or the Klang Valley after paying for housing, car loans, children’s education, insurance, elderly parents and daily living costs.

“These are not millionaires. These are ordinary middle-class families working hard just to keep their heads above water," Lim added.

Prime Minister Anwar Ibrahim recently said that the government agreed in principle to withdraw fuel subsidies from high-income earners, but is still fine-tuning the mechanism.

According to the premier, the government is looking into the eligibility aspect to ensure the move will not burden the upper-middle-income group.

However, Putrajaya had acknowledged that it is facing challenges in implementing targeted RON95 fuel subsidies, particularly in ensuring the aid reaches only those who genuinely need it.

Economy Minister Akmal Nasrullah Nasir said the government is still grappling with how to determine the eligibility threshold for the Budi95 subsidy scheme, particularly regarding the M40 middle-income group.

He said the matter was raised in a recent National Economic Action Council meeting, where Anwar reiterated Putrajaya’s commitment to implementing targeted subsidies.

The Johor Bahru MP said the government has yet to decide whether the Central Database Hub (Padu) will be used to classify individuals under the T20 high-income category.

What's Padu for then?

In his statement, Lim also took the government to task on its formation of Padu, reminding the administration that the system cost RM85.27 million to develop and implement and therefore, "must not be treated as a decoration".

“If the final decision is still based on broad labels without proper assessment, then what is the point of Padu?

ADS

“The government must answer basic questions. Is the cut based on personal income or household income? Will it consider where a family lives? Will it consider the number of children, elderly parents, housing loans, car loans and daily travel distance?

“If these questions cannot be answered clearly, then the government is not ready to implement the policy," Lim added.

He also reminded the government that Malaysians are not against reform, but against unfair, unclear and careless reform.

Lim also warned that the "biggest victims" of this planned policy may be middle-class families instead, who sit just above the line.

“They earn slightly more on paper, but their burden is still heavy. The government sees figures, but not pressure," he added.

Lim said middle-class income-earners are already carrying heavy taxes, high living costs, housing pressure and education expenses, and must not become the convenient targets whenever the government wants to save money.

“Do not turn the middle-class into the government’s ATM.

“People who work hard, earn more and move up in life should be encouraged, not punished. If Malaysians begin to believe that the harder they work, the more they lose, the country will pay a heavy price.

“Stop creating fear with unclear standards," Lim said. - Mkini