THE proposed implementation of the diesel subsidy rationalisation as announced by Prime Minister Anwar Ibrahim during the October 13 tabling of Budget 2024 was among the focus of MPs during the Supply Bill 2024 debate in the Dewan Rakyat today.

Jimmy Puah Wee Tse (Tebrau-PH) said the targeted subsidy system 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 said.

Mohd Isam Mohd Isa (Tampin-BN) said the government should prioritise finding a solution to stop foreigners from enjoying fuel subsidies.

Stricter border control was necessary to stop fuel smuggling out of the country, he said.

R. Ramanan (Sungai Buloh-PH) said all stakeholders need to collaborate to help those in need and lower the poverty rate.

Muhammad Fawwaz Mohamad Jan (Permatang Pauh-PN) suggested the government explore a corporate savings tax to boost national income, with the funds directed towards supporting the underprivileged.

“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. I believe the government should consider implementing this tax as it could generate substantial revenue.

“A 2.5% annual 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 said this levy would not burden the wealthy, and the proposed rate aligned with the “zakat harta” (property tithe) in line with Muslim practices.

The government could impose a lower rate if there was concern about negative sentiments among investors, he said. – Bernama, October 24, 2023.