The government should consider implementing a petrol and diesel tax system instead of slashing subsidies to generate more revenue, a DAP MP said today.

Raub MP Ariff Sabri Abdul Aziz said such a move can be introduced for cars above 1,600cc, according to different category bands, and should be lumped together with the annual road tax renewal fees.

That way, he argued, the government can make revenue that can offset the subsidy costs that the state incurs annually.

"By withdrawing subsidy because we want to prevent the undeserving ones from benefitting, we have also caused collateral casualties. We want to punish the better off, but the less off get punished too," Ariff ( right ) said in his blog.

"The government has to implement some kind of PnD tax to redistribute real income. The better off with higher capacity cars will have to pay taxes so that they help reduce the subsidy burden of the government," he added.

He also flayed Deputy Finance Minister Ahmad Maslan for repeatedly saying the government is spending RM21 billion on petrol subsidies.

"Maybe that will reduce the annual RM21 billion on petrol subsidies and we can be shielded from Ahmad Maslan’s annoying parrot calls on how much subsidy this caring government gives out," he said.

"It has become nauseatingly irritating," he added, referring to Ahmad Maslan defending the government's decision to rationalise subsidy at a time when living costs have become a palpable concern for Malaysians.