KUALA LUMPUR: Prime Minister Anwar Ibrahim’s plan to rationalise government subsidies is confusing, Bersatu Youth chief Wan Ahmad Fayhsal Wan Ahmad Kamal said.
“We didn’t get any further information or the mechanics (of how it will work),” he told reporters at Parliament House today.
In his budget speech today, Anwar announced a shift away from blanket subsidies to a system that mainly aids lower-income groups.
“Although subsidised goods help the people minimise the cost of living, the fact remains that subsidies benefit the rich more, and low prices have increased wastages and smuggling out of the country,” Anwar said.
Anwar said diesel subsidies will be cut in a phased manner, while temporary price controls on chicken and eggs will be lifted. Savings from subsidy cuts would be channelled to cash aid for the needy, increased to RM10 billion from RM8 billion .
Wan Fayhsal questioned why the budget speech made no mention of a consumption tax.
“Previously, economy minister Rafizi Ramli proposed the revival of goods and services tax (GST), but it seems there was no mention of any consumption tax for the government to increase its revenue.
“We are also waiting to see if this budget is based on estimates of how much a barrel of oil will cost, hence many things are rather unclear,” he said.
Wan Fayhsal, who is MP for Machang, said Anwar has still not made the details of the luxury goods tax clear. “For instance, is a Tesla considered luxury goods, or is it just an electric vehicle?” he said.
Pendang MP Awang Hashim wanted to know why the prime minister’s office required additional funding, with an increase of more than RM7 billion.
He was also curious about the defence ministry allocation, saying the defence ministry “has a proven track record for scandals”.
Anwar announced an allocation of RM19.7 billion for the defence ministry, an increase of RM2 billion, while the home ministry will receive RM19 billion, an increase of RM500 million.
He said the government would buy 12 new helicopters for the air force; 60 infantry fighting vehicles, 50 high mobility light tactical vehicles, six hovercraft fast interceptors and 733 support vehicles, and three littoral mission ships for the navy. - FMT
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