KUALA LUMPUR: The framework for the implementation of targeted subsidies is 75 per cent complete, said Deputy Finance Minister Datuk Seri Ahmad Maslan.
He said the outcomes of the discussions on the framework by various committees would be presented to the cabinet.
The Pontian member of parliament did not rule out the possibility that the framework would be announced during the tabling of the 2024 Budget this year.
"The implementation has started in stages, where those in the top 20 income (T20) group will no longer receive subsidies for electricity and haj pilgrimage.
"However, we are still looking into the mechanism of the subsidies, including whether we want to use the identity card or a special card, or take into account the car engine capacity (for fuel subsidies)."
He said this at a press conference after attending the signing of the Agreement on the Elimination of Double Taxation on Income Tax and Prevention of Tax Evasion and Avoidance between Malaysia and the Maldives at Parliament here today.
Present was Maldives Finance Minister Ibrahim Ameer.
On Monday, Prime Minister Datuk Seri Anwar Ibrahim said people earning more than the average salary or those who fall under the T20 category would no longer receive subsidies pertaining to electricity or haj.
Anwar, who is also finance minister, said the government would coordinate the distribution of subsidies according to income groups through the implementation of the household socio-economic database, Pangkalan Data Utama (Padu), which is expected to be completed by the end of the year.
Last week, Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub said the government was expected to implement targeted subsidies, including for RON95 and diesel fuel, starting next year.
On economists' recommendation that the government not only rely on the value of monthly income but also the amount of commitments of the T20 group, Ahmad said the matter was being discussed by a special committee.
He, however, said discussions on the matter and other aspects concerning those in the T20 income bracket were ongoing.
"We do take into account the lower-level T20 group, whose monthly income will be adjusted based on their dependents.
"There may be special consideration for this group, but it would not apply to those in the mid- or upper-levels of the category."
