PRIME Minister Dr Mahathir Mohamad today said it is difficult to lower taxes while increasing subsidies in Budget 2020 that will be tabled tomorrow.

He said there must be a balance between the two suggestions because the government must have money to give out more subsidies.

“I read that what the people want (in Budget 2020) is lower taxes and increase subsidies. It is difficult. You can’t have lower taxes and increase in subsidies.

“We will try to lower taxes, but the government must have money if we are going to give subsidies,” he said, after attending the International Greentech & Eco Products Exhibition & Conference Malaysia today.

Finance Minister Lim Guan Eng will table Budget 2020, which is widely expected to be aimed at boosting domestic spending and investment in the face of a gloomy world economy. 

Dr Mahathir said the subsidies will not be given to everyone.

“It must be given to deserving groups of people.

“Even among the B40 group, there are those who don’t need the subsidies.”

He added the government will be scrutinising who gets the subsidies.

“We are going into detail who will receive government subsidies.

“With regard to taxes, we will try to tax the rich more than the poor. That is the principle behind our taxes.” – October 10, 2019.