Dr M: Lower tax and higher subsidies idea is nonsensical
KUALA LUMPUR: It is ridiculous to ask the government to lower taxes but increase subsidies at the same time, said Prime Minister Tun Dr Mahathir Mohamad.
In a sharp rebuke, Mahathir said that there must be a balance between taxes and subsidies so that the government can generate revenue, which will eventually be dished out as subsidies.
“I read in the newspapers what the people want is lower taxes and an increase in subsidies. That is contrary. You can’t have lower taxes and then increase in subsidies.
“There must be a balance between the two. We try to lower taxes but the government must have money.
“If you’re going to subsidise, you must have money. If you lower taxes too much, we will have no money which means we won’t be able to subsidise,” he told reporters today.
Mahathir said this when referred to the pre-budget 2020 wish list conducted by the media.
The poll found that respondents wanted lower taxes and higher subsidies, especially on essential items including rice, flour, cooking oil and others.
Touching on the matter, Mahathir said that the government is trying to tax the rich more, which is the principle behind Malaysia’s tax system, while subsidies would only be given to the deserving.
“Subsidies will not be given outright to everybody. It must be given to the deserving group.
“Even among the B40, there are people who don’t need subsidies. We are going into details on who should receive subsidies from the government,” he said.
Meanwhile, on offers for the acquisition of the tolled highway operator PLUS Malaysia Bhd, Mahathir said the government has to evaluate all proposals properly.
“There have been a lot of proposals to take over PLUS but we have to make sure that government’s money is used wisely, not just because we want to protect the government or we are against certain bidders.
“It must be valued properly and if the bid is good, we will consider,” he said.
By G Vinod
