KUALA LUMPUR: The government will review the mechanism on petroleum products subsidy.
Deputy Finance Minister I Datuk Mohd Shahar Abdullah said any subsidy mechanism would be reviewed and refined to ensure the subsidy could directly benefit the people.
He added that the finance ministry has been given the mandate to hold engagements with various agencies and related companies to refine the steps on the implementation of the targeted petrol subsidy rationalisation.
He was responding to an additional question from Datuk Wira Amiruddin Hamzah (Kubang Pasu-Pejuang) and Datuk Seri Salim Sharif (Jempol-BN) on the approach taken for targeted petroleum products subsidy in Parliament today.
Mohd Shahar said that every US$1 (US$1=RM4.23) per barrel increase in crude oil price will bring RM300 million extra revenue to the government.
"But for every US$1 per barrel will have an implication of RM600 million and it is not breakeven as we implement a ceiling price. For example, we set the ceiling price of RM2.05 per litre for RON95 but the actual price is RM3.70 per litre and the government bears RM1.65," Mohd Shahar said.
He said the government would consider several medium-term tax measures, including the options to reduce the reliance on direct taxes and broaden the revenue base by shifting to tax based on consumption such as exploring the scope of taxes and sales and services tax rate.
Mohd Shahar added the government would also explore new tax revenue sources such as capital gains and digital economy taxes.
He said the government has no intention to reduce the corporate tax rate to attract more foreign investment, adding that corporate tax had been reduced by one percentage point to 24 per cent from 25 per cent.
"The government always pays attention to the announcement on changes in tax treatment in regional countries including active involvement at international level to ensure Malaysia stays competitive," he said.
He was responding to a question by Datuk Seri Mohd Redzuan Md Yusof (Alor Gajah-Bersatu) on the suggestion to offer a lower tax rate to attract foreign investment.
-- BERNAMA
Bernama
Thu Mar 24 2022
Mohd Shahar said that every US$1 (US$1=RM4.23) per barrel increase in crude oil price will bring RM300 million extra revenue to the government. - REUTERS
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.