Govt to cut subsidies for T20

KUALA LUMPUR: Those in the top 20 income group will no longer enjoy any subsidy for electricity or haj, says Datuk Seri Anwar Ibrahim.

The Prime Minister said the government was in the midst of coordinating the distribution of subsidies according to the income of each household group.

“To curb leakages, the government has initiated targeted electricity tariffs in the first half of this year to maintain the tariff for households, small and medium-sized enterprises, and agricultural producers.

“We will not increase the electricity tariff except for those in the T20 group,” said Anwar during Question Time.

He was responding to a question raised by Datuk Seri Hamzah Zainudin (PN-Larut) who asked the government to state new and drastic policies that were implemented by the unity government to stimulate the national economy, taking into account the risks facing the world economy.

Anwar said the Central Database Hub would be the main agency to coordinate the matter.

He also said the haj subsidy for the B40 income group would remain while those in the T20 would have to bear the total cost of the pilgrimage.

“We will no longer give subsidies to them. They have to pay the full cost because they can afford it,” said Anwar.

On May 14, the government announced that households with high electricity consumption would no longer enjoy subsidies.

Anwar said households such as those that used three fans and four air conditioners should pay the actual cost of consumption.

“It needs to be understood that there will be no increase for 90% of the people but there will be a tariff increase for households that use excessive electricity such as multiple air conditioners,” he said.

In early March, Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said the government had allocated RM10.76bil to cover electricity bill subsidies for domestic and non-domestic consumers in the low voltage category.