‘No plan to rationalise subsidies for other products’
The government has not made any decision to rationalise subsidies for other products other than oil and sugar at this juncture, said Deputy Finance Minister Johari Abdul Ghani.
He said at the moment the government has decided that the subsidy rationalisation is limited to the two products.
Hence, Johari dismissed the notion that the subsidy rationalisation would be imposed on other necessities such as cooking oil and rice.
He said even though the economic environment is more challenging amid moderate global economic growth, decline in commodities prices as well as the volatility in financial markets, Malaysia’s economy is still stable.
He said this to reporters after the launch of the Inland Revenue Board’s (IRB) Information Processing Centre today.
He said it is true that the country’s gross domestic product (GDP) is expected to grow at 4.5 to 5.5 percent this year and is expected to continue to grow albeit at a slower growth of 4 to 5 percent.
According to him, the federal government is projected to record a revenue of RM222.5 billion this year, whereby direct taxes would contribute RM116.8 billion, indirect taxes RM53.3 billion and non-tax revenue RM52.4 billion.
“The government is also committed in its efforts for fiscal consolidation to reduce the deficit towards achieving a balanced budget, as well as ensuring the country’s finance position continues to be stable.
“The government deficit is expected to continue to fall from 3.2 percent of gross domestic product this year to 3.1 percent next year,” he said.
Meanwhile, IRB chief executive officer Mohd Shukor Mahfar in his speech said the rakyat should accept the fact that Malaysia is still dependent on tax revenue.
He said this is because 60 to 70 percent of the country’s requirements for the annual budget are funded by tax collection revenue.
- Bernama
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