Top 5 May Be Excluded From Ron95 Fuel Subsidy Scheme Says Anwar
Prime Minister Anwar Ibrahim also says foreigners will continue to be excluded from benefitting from targeted subsidies for RON95.
PKR president Anwar Ibrahim delivering his winding-up speech at the party’s national congress in Johor Bahru today.JOHOR BAHRU: Prime Minister Anwar Ibrahim has proposed excluding the wealthiest 5% of the population from receiving the targeted RON95 fuel subsidies under a scheme expected to be implemented this year
In his winding-up speech at the PKR national congress today, the party president, who is also the finance minister, said the targeted subsidies idea should not be rejected.
“If we implement this, perhaps we’ll start with the top 5% – the ultra-rich.
“This group of people won’t air their grievances themselves. Instead, they will get two or three MPs to speak on their behalf,” he said, without specifying who he was referring to.
Anwar also said foreigners would continue to be excluded from benefitting from the targeted subsidies for RON95. Currently, foreign vehicle owners are not allowed to purchase the subsidised RON95 fuel at petrol stations.
“These foreign vehicle owners are costing us an estimated RM3 to RM4 billion in subsidies.
“So if we withdraw these subsidies, it simply means those buying fuel will need to show their MyKad, or we’ll come up with other detailed mechanisms to identify eligible recipients.
“No country in the world gives subsidies to foreigners. And where else do you see fuel subsidies for someone who owns a Rolls-Royce?
“Many opposition MPs end up acting as spokesmen for the ultra-wealthy, the ones with Rolls-Royces, and then they get PAS MPs to defend them,” he said.
Last December, economy minister Rafizi Ramli said the government would announce the T15 high-income classification, which will identify those to be excluded from targeted subsidies, by the first quarter of 2025.
On Monday, he was quoted as saying that the decision on the RON95 fuel subsidy rationalisation plan had been handed over to the finance ministry following a Cabinet decision.
He said his ministry had engaged with the Cabinet four times regarding this matter and the current position was to await further updates from the finance ministry. - FMT
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