THE government’s move to execute the rationalisation of fuel subsidies as announced by Prime Minister Datuk Seri Anwar Ibrahim recently requires serious attention to three matters, namely:

Mechanism

What is the mechanism or guideline for its implementation? How will an assessment of an individual be conducted before he/she is deemed eligible to receive subsidies? What are the details of the wealthy group that are often mentioned repeatedly? Will a retired civil servant who does not work and owns a ‘luxury branded car’ of over 20 years old be labelled as wealthy and thus ineligible for subsidies?

Will an employee who earns RM10,000 a month still be considered wealthy even though, at the same time, he/she needs to support eight children, including a disabled child, and care for both parents who suffer from chronic illnesses?

Timing of implementation

At a time when the new government has just raised the SST rate from 6% to 8% and introduced new taxes such as low-value goods tax (LVGT), high-value goods tax (HVGT), digital tax, logistics tax, and others, surely this is not the appropriate time for the government to withdraw the subsidies.

What steps or efforts is the government currently taking to assist the public in coping with the soaring cost of living, including the effects of subsidy withdrawal and its domino effect?

Government savings

The government has claimed that it can save RM4 bil annually. If government revenue is the basis for the subsidy withdrawal, then it would be reasonable for the government to reinstate the GST. The GST has been proven to be a more transparent system that can generate revenue for the government before being returned to the people.

Before PH1.0 abolished the GST, the GST collection in 2017 was RM44 bil, compared to SST’s collection of RM17 bil in 2014. Hence, since the government claims that it wants to expand our country’s coffers, it is wiser to restore the GST. - May 24, 2024

Datuk Ir. Lawrence Low is the MCA vice president. 

https://focusmalaysia.my/fuel-subsidy-rationalisation-3-matters-need-to-be-addressed/