PETALING JAYA: High-income earners in the T20 group will no longer reap the benefits of government fuel subsidies on RON95 petrol and diesel next year, says deputy finance minister Ahmad Maslan.
He told reporters in Pontain that more than RM50 billion is spent on government subsidies on fuel and gas which are enjoyed by all Malaysians, including the wealthy.
“We do not want the rich to get more than the poor. As it is, they are already benefitting from the subsidy with their luxury cars, due to RON95 being subsidised at RM2.05 per litre.
“They have the financial capability to pay more for their petrol compared to those in M40 and B40 who have smaller cars and even ride motorcycles,” The Star quoted him as saying at a Hari Raya event organised by the Johor Writers’ Association in Pontian today.
Ahmad said the current mechanism needs to be fixed so that only those in the lower and middle-income groups are the ones who will benefit from the subsidies.
However, commercial public vehicles such as buses and school buses will still receive the subsidy, to stop them from raising their prices which would in turn burden the public.
Ahmad, who is MP for Pontian, said Putrajaya managed to save RM4 billion between January and July last year after removing electricity subsidies for companies.
“This is why we are looking at having a proper subsidy system as the revenue we save can go back to the people. The government can build more hospitals, clinics and schools,” he reportedly said.
Yesterday, domestic trade and cost of living minister Salahuddin Ayub said the new mechanism will be implemented next year.
He said the National Economic Action Council agreed at a meeting on May 17 that an integrated database should be developed for this purpose. - FMT
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