Sunday 22 July 2012

Finance Ministry mulling subsidies revamp

BACHOK, July 22 — The Finance Ministry is studying, with a view of restructuring, all forms of subsidies, especially oil and gas, to ensure they meet the target groups and help to reduce the burden of the low income earners.

Towards this end, Deputy Finance Minister Datuk Dr Awang Adek Hussin, said he welcome suggestions from any quarters to be included for tabling of Budget 2013.

He said this after meeting residents of Kampung Perupuk here today.

Awang Adek was responding to a suggestion by Umno Youth for the government to restructure the subsidies given to the people so that they could be channelled directly to the target groups.

According to Umno Youth head Khairy Jamaludin, subsidies, like for oil and gas, were currently found to benefit the high income earners more.

The matter had been raised by many quarters, but none had submitted a comprehensive delivery system that could meet the target, said Awang Adek, who is also Kelantan Umno deputy liaison chief.

He said the government had placed the price of RON97 under managed float and maintained the subsidy for RON95, used mostly by the low income earners. — Bernama

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