KUALA LUMPUR – The proposed implementation of the diesel subsidy rationalisation as announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2024 last October 13 was among the focus of MPs when debating the supply bill in the Dewan Rakyat today.
Jimmy Puah Wee Tse (Tebrau-PH) said implementation of the targeted subsidy would help the government save money on enforcement and create a more robust financial ecosystem.
“The bulk subsidy system currently practised is no longer relevant,” he added.
Datuk Mohd Isam Mohd Isa (Tampin-BN) also said the government should prioritise finding a solution to stop non-citizens from enjoying the petrol and diesel subsidies.
Stricter border control is necessary to stop fuel smuggling out of the country, he added.
Meanwhile, Datuk R. Ramanan (Sg Buloh-PH), in his debate, raised issues related to poverty.
He expressed the need for collaboration among all stakeholders to help those in need and reduce poverty in the country.
“The collaboration of every stakeholder, including MPs, in addressing issues related to the well-being of their respective communities can end the vicious cycle of poverty… it cannot be done overnight, but the determination within every individual to be generous, as part of Malaysia Madani society, can reshape our nation’s story for the better,” he said.
Another MP proposed the government explore the possibility of implementing a corporate savings tax to boost national income, with the funds directed towards supporting the underprivileged.
Muhammad Fawwaz Mohamad Jan (Permatang Pauh-PN) proposed imposing a tax on corporate savings exceeding RM1 million.
“In Malaysia, there is currently no tax on savings that reach millions, tens of millions, or even billions. These savings remain untaxed even after a full year. Therefore, I believe the government should consider implementing this tax, as it could generate substantial revenue.
“A 2.5% yearly tax could be applied, considering the minimum annual amount owned by companies and corporations. This measure aims to protect the rights and earnings of the wealthy and prevent discrimination,” he said.
Fawwaz added that this amount would not burden the wealthy, and the proposed tax rate aligns with the “zakat harta” (property tithe) imposed by Islam.
The government could impose a lower rate if there is concern about generating negative sentiments among investors, he added. – October 24, 2023