Future Income Classifications To Consider Multiple Factors For Greater Fairness - Rafizi
PUTRAJAYA, Oct 20 (Bernama) -- Future income classifications will no longer rely solely on gross household income but will incorporate various factors to ensure greater fairness, said Economy Minister Rafizi Ramli.
Rafizi said the government's new approach to income classification will take into account net household income to ensure the people can lead a decent life.
“I can confirm that the new method will not depend solely on gross household income. We are currently working on improvements based on net household income.
“It will also consider several other factors. Once that’s finalised, we can then set the statistical lines (for population groups) such as B40 and T15,” he told reporters at the National Statistics Day 2024 Celebration and the Pre-launch of the Statistics Portal here today.
When asked about adjustments to the RON95 petrol subsidies, Rafizi said a two-tier pricing system will be introduced. Under this system, only the top 15 per cent income group, who are not eligible for subsidies, will pay the market price at petrol stations.
Rafizi added that 85 per cent of the population will continue to purchase fuel at subsidised prices when the targeted subsidy plan is implemented by mid-next year.
He said the government is currently reviewing the best mechanism to ensure effective implementation.
“The group that will no longer qualify for subsidies is what we refer to as the T15. We are in the process of defining exactly who falls into this category.
“For the remaining 30 million people, the mechanism is being fine-tuned and discussed for implementation,” he said.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling the Third MADANI Budget 2025 on Friday, assured that the government will safeguard the interests of the majority of the people in the implementation of the targeted subsidy.
Anwar added that the government plans to introduce the targeted RON95 petrol subsidy by mid-2025, with savings from the initiative being directed towards improving the welfare of the wider population.
-- BERNAMA