RON95 subsidy cuts to precede carbon tax rollout by 2026
He said Malaysia must first address the issue of fuel subsidies, particularly those involving the energy sector, before implementing the carbon tax. The government had previously announced plans to roll out a carbon tax targeting the iron, steel, and energy industries by 2026, as outlined in Budget 2025.
'As we embark on this transition, we must ensure that no unintended consequences are embedded within our system. For instance, Malaysia has yet to implement a carbon tax as part of its policy framework. While it is scheduled for rollout by 2026, there are important precursor steps we must take,' he added.
'One major issue is the existing distortions in the system, especially the subsidies provided to the energy sector. A key objective now is to begin scaling back these subsidies. It doesn't make sense to impose taxes on one side while simultaneously providing subsidies for petrol, diesel, and other fuels,' he continued.
Amir Hamzah made these remarks during a session titled 'Delivering Malaysia's Energy Transition', where he was a panellist alongside Deputy Minister of the Ministry of Energy Transition and Water Transformation (PETRA), Akmal Nasrullah Mohd Nasir.
The session was chaired by Tan Sri Abdul Wahid Omar, a senior independent and non-executive director of IOI Corporation Bhd.
-- More to follow
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
16 hours ago
- The Star
No plans to review tax relief for insurance policies
THERE is no intention to review the tax relief amounts for personal and life insurance policies, even as the government is continuously improving the income tax reliefs eligible for individual taxpayers through a targeted approach and special reliefs, says Finance Minister Datuk Seri Anwar Ibrahim. 'Through Budgets 2023, 2024 and 2025, a targeted approach has been implemented by increasing the tax relief amounts for medical treatment expenses, child care allowances, persons with disabilities, and education and medical insurance. 'Besides increasing the eligible tax relief amounts, the government, through Budget 2025, has also expanded the scope of existing tax reliefs, such as extending care and treatment for parents to include grandparents and broadening the scope of health screenings to include the purchase of self-examination health equipment and fees for disease detection tests,' he said in a written parliamentary reply. Earlier, Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) had asked the Finance Ministry whether it will review the reliefs associated with personal and life insurances that remained at RM9,000 and RM3,000, respectively, for the past 15 years. Dr Wee, who is also MCA president, said the tax relief amount did not reflect the effects of inflation and the current cost of living. Anwar also said the government introduced special reliefs for specific purposes under Budget 2025. This included relief on interest payments for housing loans for the purchase of the first residential home. 'Through this relief, the purchase of a home priced up to RM500,000 qualifies for a tax relief of up to RM7,000, while a tax relief of up to RM5,000 can be claimed for the purchase of a residential home priced between RM500,001 and RM750,000,' he added. Anwar also said other improvements to tax reliefs for individuals include reducing the tax rate by 2 percentage points for the taxable income range between RM35,001 and RM100,000 starting from the assessment year 2023. 'This tax rate reduction can provide an additional disposable income of up to RM1,300 per year for about 2.4 million taxpayers, including the middle-income group. 'In addition, the government is committed to improving tax administration and services to enhance efficiency and service levels for taxpayers,' he said. Anwar also said that any future reviews or revisions to income tax rates or individual tax reliefs need to be conducted carefully to avoid jeopardising the country's fiscal position, adding that any changes in tax policy must also align with international taxation practices and not adversely affect the country's global commitments.
The Star
a day ago
- The Star
No plans to review tax relief amount, says Anwar
KUALA LUMPUR: There is no plan to review the tax relief amount for individuals, says Datuk Seri Anwar Ibrahim. However, the Prime Minister said that the government would continuously improve income tax relief for individual taxpayers through targeted approaches and special reliefs. "Through Budgets 2023, 2024 and 2025, a targeted approach has been implemented by increasing the tax relief amounts for medical treatment expenses, childcare allowances, persons with disabilities, education and medical insurance. "Besides increasing the amount, the government, through Budget 2025, has also expanded the scope of existing tax relief such as extending care and treatment for parents to include grandparents and broadening the scope of health screenings to include the purchase of self-examination health equipment and fees for disease detection tests," said Anwar, who is also Finance Minister, in a written parliamentary reply on Thursday (July 24). Earlier, Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) had asked the ministry if it would review the tax relief for individuals and life insurance premium payments that have remained the same at RM9,000 and RM3,000, respectively, for the past 15 years. Dr Wee said that the amount did not reflect the effects of inflation and the current cost of living. Anwar said that the government had also introduced special reliefs for specific purposes in Budget 2025. This includes relief on interest payments for housing loans for the purchase of a first residential home. "Through this relief, the purchase of a home priced up to RM500,000 qualifies for a tax relief of up to RM7,000, while a tax relief of up to RM5,000 can be claimed for the purchase of a residential home priced between RM500,000 and RM750,000," he added. He added that to improve tax reliefs, the government has also reviewed and restructured the individual resident income tax rates starting from the assessment year 2023, reducing the tax rate by two percentage points for the taxable income range between RM35,001 and RM100,000. "This tax rate reduction can provide an additional disposable income of up to RM1,300 per year for approximately 2.4 million taxpayers, including the middle-income group. "In addition, the government is committed to improving tax administration and services to enhance efficiency and service levels for taxpayers," he said. Anwar also said any future review or revision to income tax rates or individual tax relief amounts needs to be conducted carefully to avoid jeopardising the country's fiscal position. He added that any changes in tax policy must also align with international taxation practices and not adversely affect the country's global commitments.
Barnama
a day ago
- Barnama
Special Appreciation For The People Yesterday Takes Into Account Country's Fiscal Capacity
KUALA LUMPUR, July 24 (Bernama) -- The special appreciation announced by Prime Minister Datuk Seri Anwar Ibrahim yesterday took into account the country's fiscal capacity, according to the Prime Minister's Office (PMO). It was also in addition to what had been planned in Budget 2025, senior press secretary to the prime minister, Tunku Nashrul Abaidah said at the Prime Minister's Office's daily briefing which was streamed live via Anwar Ibrahim's Facebook and PMO Malaysia's Facebook today. Yesterday, Anwar, who is also the Finance Minister, announced several major initiatives as a sign of the MADANI Government's appreciation to the people, including a one-off RM100 grant under the SARA programme to all citizens aged 18 and above.
