The government says that the mechanism for the targeted fuel subsidy that is expected to be introduced next year is close to being finalised. According to deputy finance minister Datuk Seri Ahmad Maslan, the the progress of discussions on the matter has reached 75% and there are just a few issues left to be resolved, The Star reports.
He said that one of the remaining issues is the method of implementation. “The decision (to implement targeted subsidies) has been agreed in principle. However, details about it are yet to be finalised. On whether the method is to use identification cards, special cards, or the car’s engine capacity, it is not yet decided,” he said, referring to the targeted fuel subsidy.
He added that the government was aware of concerns about the parameters for deciding the socio-economic classification. “We are aware there are concerns about the classification, especially among those on the borderline of T20. There are other considerations that we need to deliberate about, such as the number of dependents,” he said.
Last weekend, economy minister Rafizi Ramli said that the government will utilise a new approach to help refine its planned targeted subsidy mechanism, which will begin with diesel and electricity. This will involve collecting household net disposable income metrics to be used as a structuring measure to ensure that targeted subsidies are more accurately distributed.
As to when the completed mechanism and details of it will be revealed, Ahmad hinted that it could be presented during the tabling of Budget 2024.
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