KUALA LUMPUR: Some MPs appear to be advocating for the wealthier T15 group instead of showing more compassion for the other 85% of Malaysians, says Datuk Seri Anwar Ibrahim.
The Prime Minister urged the MPs to focus on the majority of Malaysians who continue to benefit from subsidies.
“The principle of targeted subsidies must be clear. We are forced to implement this because the government bears around RM20bil annually.
“It’s reasonable to expect subsidies and assistance to be channelled to the people,” he told the Dewan Rakyat on Tuesday (Oct 29).
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He also questioned the fairness of maintaining subsidies for the wealthiest groups.
“Is it reasonable for the government to continue subsidies for non-citizens and the top earners, including the super-rich?
“Why should we be the champions for the T15, as many Opposition MPs have argued? We must ensure subsidies (benefit) 85% of the population,” Anwar added.
His remarks came in response to questions from Khoo Poay Tiong (PH-Kota Melaka) and Datuk Dr Nik Muhammad Zawawi Salleh (PN-Pasir Puteh) on targeted subsidies and the 2% dividend tax on individual shareholders for income of over RM100,000.
The Prime Minister stressed that the decision to transition from the T20 to T15 group was made after careful consideration of household income levels, with the review ongoing.
He said some in the higher income bracket may earn as low as RM13,000 per month, while others take home RM100,000 or more.
This warranted a different approach to subsidies and taxation, he added.
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“Why is there no stance to say ‘yes, it is appropriate to charge market rates to the super-rich and top earners’?
“When we raise fuel prices to reflect market rates, it applies to foreign nationals and the T15, not to all citizens,” he explained.
In response, Nik Zawawi raised concerns about the burden on high-income individuals and the possibility that investors might leave Malaysia if the 2% dividend tax is implemented.
“Many business owners, operating as individuals, already face significant expenses and tax obligations.
“Adding this tax could burden them further, and there’s a risk of investors moving abroad,” Nik Zawawi said.
Anwar, however, said he was concerned that the focus on protecting the wealthy seemed disproportionate.
“Are we not concerned about defending the interests of the lower-income group? It seems as though 85% of the population is not important to us.
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“Who are we defending here? Those with shares worth RM2mil?" Anwar asked.
He reiterated that wealthier individuals should be taxed fairly.
“Are we progressive if we deny the need to tax dividends for those with millions of ringgit in shares?
“I hope the honourable members can present other suggestions, but saying we shouldn’t tax the rich seems strange and contrary to the principles of equitable wealth distribution,” he said.
Anwar also addressed the confusion over the definition of T15, giving his assurance that the government would periodically review household income levels.
“We are discussing whether to raise the income threshold to RM15,000 or RM20,000 or something else.
“This matter is being deliberated, and there is no contradiction, as some have suggested,” he added.
