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HIKES ON THE WAY! New FUEL SUBSIDY system still under study

July 4, 2014 12:05 AM
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PUTRAJAYA - The government is still studying the new fuel subsidy system that will be unveiled before the end of the year, said the Ministry of Finance (MOF) Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah.

"We're still studying, finalising it. The Cabinet has discussed a few times and we're now engaging the various ministries and parties to finalise the final mechanism before we implement it," he told a press conference after the launch of MOF's new portal and 1Pekeliling Perbendaharaan (1PP) here yesterday, which was officiated by Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah.

"We're still in the midst of discussing with the parties involved, how efficient and how best it will benefit the rakyat, in terms of their financial position," Irwan said, adding that the study is jointly headed by the Economic Planning Unit and Treasury.

Past reports have alluded to a multi-tiered price mechanism to disburse fuel subsidies to deserving groups.

Meanwhile, Irwan said a committee of MOF and the Inland Revenue Board (IRB) will be formed when the bill on proposed amendments to the IRB Malaysia 1995 (Act 533) is tabled to discuss the detailed mechanism in determining the agency fees.

The proposed bill aims to make the IRB as self-financing, which means the government will contribute a fee to cover operating and development costs.

Reports say that the authority is looking at offering 1.5% of all tax collected as an agency fee to the IRB, but this has yet to be finalised.

Source: malaysia-chronicle.com

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