Rafizi: B40, T15 to be based on net income, two-tiered RON95 subsidy

BUDGET 2025 | Future income classifications will not rely solely on gross household income but incorporate various factors to ensure greater fairness, said Economy Minister Rafizi Ramli.

“I can confirm that the new method will not depend solely on gross household income. We are currently working on improvements based on net household income.

“It will also consider several other factors. Once that’s finalised, we can then set the statistical lines (for population groups) such as B40 and T15,” he said.

Rafizi was speaking to reporters at the National Statistics Day 2024 Celebration and the pre-launch of the Statistics Portal in Putrajaya today.

When asked about adjustments to the RON95 petrol subsidies, he said a two-tier pricing system will be introduced.

Under this system, only the top 15 percent income group, who are not eligible for subsidies, will pay the market price at petrol stations.

Rafizi added that 85 percent of the population will continue to purchase fuel at subsidised prices when the targeted subsidy plan is implemented next year.

He said the government is reviewing the best mechanism to ensure effective implementation.

“The group that will no longer qualify for subsidies is what we refer to as the T15. We are in the process of defining exactly who falls into this category.

“For the remaining 30 million people, the mechanism is being fine-tuned and discussed for implementation,” he said.

Prime Minister Anwar Ibrahim, when tabling Budget 2025 in Parliament on Friday, assured that the government will safeguard the interests of the majority of the people when implementing targeted subsidies.

Anwar, who is also finance minister, added that the government plans to introduce the targeted RON95 subsidy by mid-2025, with savings from the initiative directed towards improving the welfare of the wider population.

- Bernama

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