SEREMBAN: There is a need to quickly iron out details related to the Subsidised Diesel Control System (SKDS) Phase 2.0 fleet card system, says Datuk Seri Dr Wee Ka Siong.
The MCA president said the government should also ensure any measure is fully ready before making any important announcements, such as on the rationalisation of diesel subsidy.
“You need to tell those who qualify for the fleet card, for example, the quantum of subsidy that they will receive.
“If you don’t, then they will have no clue at all and they will just increase prices,” he told reporters after opening the Seremban MCA annual general meeting here on Saturday night.
Dr Wee was commenting on the uncertainties and issues that have been raised by several quarters following the implementation of rationalised diesel subsidies in the peninsula which began on June 10.
On June 18, industry experts said glitches and uncertainties in the SKDS Phase 2.0 fleet card system could cause a slight rise in food prices in the coming weeks.
Dr Wee said those eligible for the diesel subsidy need to give customers a quotation for their services.
“The government needs to say what is the maximum quantity of (subsidised) diesel that can be given to a company so that they will not impose additional charges,” he said.
Prior to this, SME Association Malaysia president Ding Hong Sing said many businesses have yet to receive their fleet cards despite applying for them earlier and there are others who still do not know if they are eligible for the refunds.
Bumiputra Retailers Association president Datuk Ameer Ali Mydin had also said the fleet card system could have been better rolled out before announcing the diesel subsidy rationalisation.
A total of 33 types of vehicles under the SKDS continue to enjoy subsidised diesel at RM2.15 per litre via the fleet card system.
Dr Wee said those eligible cannot be left to assume how much subsidised diesel they are entitled to.
“The devil is in the details ... so everyone knows and understands and says yes to the rationalisation of the subsidies,” he said.
Dr Wee said the government may also want to look at the monthly RM200 Budi Madani cash assistance for individual diesel vehicle owners such as farmers in Cameron Highlands.
He said the amount may be insufficient as they have to transport their produce quite a distance away.
“You must understand that the distance is too long and if they apply for the RM200, what is left for them?
“This will cause prices to go up and the cost will be passed on to consumers and will lead to inflation,” he said.
Separately, Dr Wee said the government may want to consider bringing back the Goods and Services Tax (GST) – which was a better taxation system for the country with a broader-based revenue.
“In the long run, the government must be brave enough to bring back the GST, which must be better than the SST as it has been implemented in some 175 countries.
“In fact, a fiscal report published by the Finance Ministry had also clearly stated that the GST is better in all aspects compared to the SST, so why wait (to revert to the GST)?” he asked.
