KUALA LUMPUR – Putrajaya is in the process of determining the threshold requirements for implementing targeted subsidies on RON95 petrol, Prime Minister Datuk Seri Anwar Ibrahim (Tambun-PH) told parliament today.
Under Budget 2025, the government has thus far decided that households in the T15 income category will be excluded from the subsidy programme when it launches mid-next year.
However, a final decision has not yet been made on which households will precisely fall into this group.
Based on data from the Statistics Department, the Tambun MP noted that the T15 threshold currently includes households earning RM13,000, a figure he considers too low.
“We want to increase that threshold a little bit so that it does not become a burden,” Anwar said.
On the 2% tax on dividend earnings exceeding RM100,000, the prime minister clarified that this would primarily affect individuals holding shares valued at RM2 million or more.
He added that such individuals would likely pay an annual tax of approximately RM700 to RM800.
Responding to concerns that this tax could impact small and medium enterprises (SMEs), Anwar explained that Putrajaya had set the tax rate at 2% instead of a higher 5% to lessen the impact.
Addressing the opposition’s criticisms on the subsidies and dividend tax measures, Anwar remarked that the opposition’s stance seemed to favour the T15.
He expressed surprise that the debates neglected the needs of the vast majority, remarking, “It’s like we don’t want to talk about the ordinary working-class and we want to defend the people with RM2 million shares.”
He invited constructive suggestions on the policy, adding: “If there are recommendations, we welcome them. But to say we can’t tax the rich, it’s so peculiar and contradicts the principles of wanting an equitable distribution of wealth.”
Anwar’s comments were made during the ministerial question time in parliament today. – October 29, 2024