A recent report released by the Federal Minister suggested that the kemaskini br1m 2016 initiative could help ease the additional burden on the poor Malays caused by the recent petrol price hike. KhairyJamaluddin, Youth and Sports minister, said it’s tough on the Government’s part to completely minimize petrol prices because it is directly linked with the country’s economic development but he pointed out that the incredible aid would help the poor people deal with petrol hikes better.
It’s not that the subsidy prices are not meant to help the poor people but the fact of the matter is, everyone has to understand that the subsidy prices are fixed the same for all, irrespective of whether they are rich or poor, and that’s the way it is, but the poor people will get some help through brim kemaskini, Khairy said.
He also said that the government is considering reduction in income tax for the middle class people, so that they too get benefitted when it comes to dealing with their subsidy bills and inflation. We have the Goods and services tax scheme, which will aim at trimming the tax of the middle class people. In other words, we this program is all about helping the middle class people to offset their additional monthly expenses caused due to fuel price hikes and inflation, he said.
On the other hand, Putrajaya is feeling the heat to reduce its overall spending and bring it down to less than 3.5 percent of the country’s GDP. In turn, this lead to the recent drop in sugar prices and hike in Electricity rates for the Malay residents. Although the raise in electricity tariffs raised concerns among the middle class, the government says when there is a hike in one segment, there is a deduction in another so that people are able to deal with it.