Govt to identify M40 fuel subsidy recipients via tax, TNB utility bills

The Finance Ministry expects 8m recipients in total, there are 5m non-BSH recipients who will benefit from PSP

pic by MUHD AMIN NAHARUL

FIVE million people of the middle-40% (M40) income group are expected to benefit from the petrol subsidy programme (PSP) after the government announced plans to expand the scheme beyond Cost of Living Aid (BSH) beneficiaries.

Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail (picture) said these recipients will be identified via cross-referenced data from the Road Transport Department, the Inland Revenue Board and Tenaga Nasional Bhd (TNB) utility bills.

“If the Finance Ministry expects eight million recipients in total, there are five million non-BSH recipients who will benefit from PSP. They could be from the bottom tier of the M40 group, the middle or top. We do not have credible data on this now.

“We will ask the public to register and we will cross-check their details with the relevant departments, including TNB, which has 7.5 million active consumers. If we find that the person has been making payments between RM100 and RM120 for six months, we can assume that the individual falls under the bottom M40 category,” Saifuddin Nasution told the Dewan Rakyat yesterday.

He was responding to a question by Datuk Seri Reezal Merican (Barisan Nasional-Kepala Batas) who asked if the same cash transfer mechanism used for BSH recipients will be implemented for M40 recipients instead of distributing RON95 fuel petrol cards (Kad95).

Saifuddin Nasution said the relevant ministries will discuss further on the implementation of the subsidy scheme to ensure smooth-running of the system once it is up in Peninsular Malaysia in January next year.

“The government will continue to work with all parties to ensure that the implementation of PSP runs smoothly and in accordance with its objectives,” he said.

Finance Minister Lim Guan Eng, in his budget speech last Friday, announced that the government has allocated RM2.2 billion for the PSP scheme, which is targeted to benefit eight million vehicle owners.

PSP comprises of two categories; with the first being eligible BSH recipients who will be given RM30 petrol subsidy per month for cars and RM12 per month for motorcycles, where the money will be deposited into their accounts every four months.

Kad95 is for the second category of PSP recipients. The card will allow them to enjoy a 30 sen per litre petrol subsidy, limited to 100 litres per month for cars, or 40 litres per month for motorcycles.