TARGETED subsidies would not be likely to increase costs for existing industries, Deputy Finance Minister I Datuk Seri Ahmad Maslan said.
He said the government would prioritise effective communication with the industry so there is no shock to the economy.
“The current fuel subsidy is aimed at reducing the impact of rising living costs following fuel price hikes in the market, especially for low- and middle-income groups.
“To continue protecting consumers from the effects of rising crude oil prices, the government has maintained the prices of RON95 at RM2.05 per litre and diesel at RM2.15 per litre even though the market prices of both products have exceeded the ceiling prices,” he said in reply to a question from Nik Mohamad Abduh Nik Abdul Aziz, who asked whether subsidy rationalisation measures and tax reforms would impact low- and middle-income groups.
Ahmad said any changes to tax policies would consider economic impact and effects on living costs.
“The government is monitoring the current economic situation and considering fiscal measures that suit short- and medium-term needs.
“The government will continue to engage with all stakeholders to study aspects of reforming the national taxation system,” he said.
Ahmad said the government would ensure that when the targeted subsidies are implemented next year, likely in March, they would start with diesel and then RON95 the following month.
“To ensure prices of goods do not rise, the diesel subsidy for vehicles transporting goods will remain, so there is no reason for the price of goods to rise because the price remains at RM2.15 per litre.
“For private vehicles in Sabah and Sarawak, we maintain it at RM2.15 per litre, for fishermen we also maintain the diesel price at RM1.65 per litre, and public transport such as school buses will remain at RM1.88 per litre when targeted subsidies are activated,” he said.
“The Domestic Trade and Cost of Living Ministry has many officers to combat leakages. They enforce 12 acts and encourage ethical trading to ensure consumers are always protected.” – Bernama, November 27, 2023.
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