Enough talk, time to bite the bullet and start removing subsidies


Subsidies distort the market, and as with the current debate, the wealthy benefit most from them simply because they consume more. — ZHAFARAN NASIB/The Star

There's a lot of angry chatter about the changes to how diesel is being sold with the introduction of the Budi Madani programme, a targeted subsidy for diesel vehicle owners in Peninsular Malaysia. And a lot of it is loud if only because everyone seems to be angry about it. But the more I hear and read about it, the more I realise: This is something I’ve heard before.

On the surface, the programme is intriguing. It aims to provide RM200 a month to recipients; eligibility includes owning a diesel vehicle that is less than 10 years old, and living in a household that earns less than RM100,000 a year. That is worth a dissection on its own already.

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Dzof Azmi , subsidies , fuel , diesel , GST , tax reform

   

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