Using MyKad for fuel subsidy won’t solve Putrajaya’s problems, says Pakatan
Putrajaya's proposal that MyKad be used when buying subsidised fuel by June next year overlooks the need to minimise leakage in government spending as well as the urgency of larger fiscal reforms, Pakatan Rakyat leaders say.
Instead, a holistic solution was needed to tackle long-standing issues, such as tax restructuring and raising wages, they insisted.
"With the implementation of the goods and services tax (GST) in April next year, Putrajaya should not have lifted the fuel subsidies just yet.
"It seems that the issue of targeted subsidies is a common problem and there is no end to it. In fact, it could potentially bring more harm," PKR communications director Fahmi Fadzil told The Malaysian Insider.
"I have no confidence in the proposal to subsidise petrol using the MyKad, as irresponsible quarters can still find their way around it, for example by using other people's identity cards."
On Thursday, Deputy Finance Minister Datuk Ahmad Maslan said that the new petrol subsidy rationalisation would use MyKad to ensure that only the low-income group would continue to enjoy subsidised petrol or diesel.
"So whoever deserves the subsidies, gets it, while those who don't, won't," he reportedly said.
Fahmi said the deputy minister should instead focus on reducing leakage, promoting transparency in administration and the existing policies, rather than throwing out ideas or rhetoric to gauge the public's reaction.
PAS Research and Development Centre director Dr Dzulkefly Ahmad said Putrajaya should look into managing the country's fiscal responsibilities instead of smaller matters, such as fuel subsidy.
"The issue here is not the targeted subsidy but the government's commitment towards increasing the people's income and managing leakage as well as restructuring the tax system," he said.
He added that Putrajaya would have to pay a huge sum to insert the details of the people's income in their MyKad.
"It can be carried out, yet we've been hearing about the idea of using MyKad for decades, and still nothing has been done," he told The Malaysian Insider.
Dzulkefly said the proposal appeared to have overlooked the woes of the middle class who still suffered under the current economic system.
"Those with income between RM4,000 and RM5,000 are still caught in a bind."
DAP national organisation secretary Anthony Loke said Putrajaya should only make such announcements after sufficient studies had been carried out.
"We don't want any premature announcements to be made of plans that may never even be carried out because this would just confuse the people," said the Seremban MP.
He added that Parliament should set up a committee to discuss the plan before making any decisions.
Ahmad had previously said the proposal was still under study and the Domestic Trade, Cooperatives and Consumerism Ministry had requested firms interested in developing the new mechanism to submit their working papers.
He said the new system would allow only Malaysians earning RM4,000 and below to enjoy full petrol subsidies.
He said the government had yet to decide whether the subsidy would be extended to those earning between RM4,000 and RM12,000.
Earlier this month, the price of RON95 petrol went up by 20 sen to RM2.30 per litre while diesel, from RM2 to RM2.20 per litre.
The ministry said the move was in line with its subsidy rationalisation plan.
"Despite the increase, the government will still need to spend more than RM21 billion on fuel RON95, diesel and LPG subsidies for this year."
The last time fuel subsidies were slashed was on September 2 last year with a 20 sen reduction in RON95 petrol and diesel subsidies, and a 15-sen subsidy decrease in RON97 petrol two days later.
In Budget 2015, tabled on October 10, Prime Minister Datuk Seri Najib Razak announced that RON95, diesel and LPG would be exempted from GST effective April 2015. – October 26, 2014.
