Latest news with #subsidies
Malay Mail
10 hours ago
- Business
- Malay Mail
‘We collect taxes to return them to the people': PM justifies SST expansion, says Malaysians to benefit through welfare aid
PUTRAJAYA, June 20 — Prime Minister Datuk Seri Anwar Ibrahim has today assured the public that his administration's fiscal reform will not compromise the welfare of the majority. Speaking to Finance Ministry staff, he said that broadening the tax base by expanding the Sales and Services Tax (SST) will instead allow Putrajaya to enhance its assistance and services for Malaysians. 'In Malaysia, subsidies are given to everyone, even foreigners, those who don't pay taxes, and the wealthy earning RM1 million a month receive electricity subsidies,' he said in his speech at the Finance Ministry monthly assembly here. 'What we're doing now is removing those subsidies, making them pay the actual cost while allowing Tenaga Nasional Berhad to earn a reasonable profit. Through this, we save RM4 billion. 'And what is that RM4 billion for? It goes to the schools and hospitals,' he added. Anwar cited targeted aid initiatives such as the Rahmah Cash Aid (STR) and Sumbangan Asas Rahmah (SARA) as key examples of how public funds are being channelled back to those who need them most. 'What are we collecting billions in taxes for? As everyone knows, the total allocation for STR and SARA amounts to RM13 billion and benefits nine million people. 'So this is our reasoning, we collect these taxes and return them to the people,' he said. Anwar also said that the Ministries of Education and Health have received increased allocations in the current budget as part of efforts to enhance the country's education and healthcare systems. 'That's why in deciding on this matter, we need to look at it from a macro perspective. If we look at past budgets, there were some good elements, but the significant increase in allocations for health and education reflects our priorities,' he said. Earlier this month, the Ministry of Finance announced the implementation of revised SST rates and expanded scope of the Service Tax effective July 1, 2025 to strengthen the country's fiscal position by increasing revenue and broadening the tax base. However, the announcement has since faced criticism from various quarters, with calls to delay its implementation over concerns that it could worsen the cost of living and place additional pressure on small businesses amid fragile economic conditions.
Malay Mail
11 hours ago
- Business
- Malay Mail
‘We collect taxes to return them to the people': PM justifies SST expansion, says Malaysians to benefit through welfare benefits
PUTRAJAYA, June 20 — Prime Minister Datuk Seri Anwar Ibrahim has today assured the public that his administration's fiscal reform will not compromise the welfare of the majority. Speaking to Finance Ministry staff, he said that broadening the tax base by expanding the Sales and Services Tax (SST) will instead allow Putrajaya to enhance its assistance and services for Malaysians. 'In Malaysia, subsidies are given to everyone, even foreigners, those who don't pay taxes, and the wealthy earning RM1 million a month receive electricity subsidies,' he said in his speech at the Finance Ministry monthly assembly here. 'What we're doing now is removing those subsidies, making them pay the actual cost while allowing Tenaga Nasional Berhad to earn a reasonable profit. Through this, we save RM4 billion. 'And what is that RM4 billion for? It goes to the schools and hospitals,' he added. Anwar cited targeted aid initiatives such as the Rahmah Cash Aid (STR) and Sumbangan Asas Rahmah (SARA) as key examples of how public funds are being channelled back to those who need them most. 'What are we collecting billions in taxes for? As everyone knows, the total allocation for STR and SARA amounts to RM13 billion and benefits nine million people. 'So this is our reasoning, we collect these taxes and return them to the people,' he said. Anwar also said that the Ministries of Education and Health have received increased allocations in the current budget as part of efforts to enhance the country's education and healthcare systems. 'That's why in deciding on this matter, we need to look at it from a macro perspective. If we look at past budgets, there were some good elements, but the significant increase in allocations for health and education reflects our priorities,' he said. Earlier this month, the Ministry of Finance announced the implementation of revised SST rates and expanded scope of the Service Tax effective July 1, 2025 to strengthen the country's fiscal position by increasing revenue and broadening the tax base. However, the announcement has since faced criticism from various quarters, with calls to delay its implementation over concerns that it could worsen the cost of living and place additional pressure on small businesses amid fragile economic conditions.
South China Morning Post
14 hours ago
- Politics
- South China Morning Post
Japan plans to expand nuclear risk payouts for towns, critics call it a ‘bribe'
Japan 's ruling coalition has agreed to expand financial support for communities near nuclear plants, drawing fierce criticism from environmental groups who describe the move as a 'bribe' aimed at buying consent from cash-strapped rural areas. Under the proposal, backed this week by senior officials in the Liberal Democratic Party and its partner Komeito, subsidies would be extended beyond the current 10km radius to include municipalities up to 30km from nuclear facilities. The government is also considering legal changes to promote economic development in areas close to nuclear plants that would also bring in more money for local authorities. A portion of the subsidies would be earmarked for evacuation planning in case of accidents – but critics argue the scheme is less about safety and more about co-opting vulnerable local authorities. 'It is effectively a bribe to these communities because years of government policies have drained the countryside of employment and forced people to move to the cities,' said Aileen Mioko Smith, an environmental campaigner with Kyoto-based Green Action Japan. 01:01 Japan's researchers develop ocean-friendly plastic Japan's researchers develop ocean-friendly plastic 'With the rural population decreasing and ageing, these communities are desperate for funds,' she told This Week in Asia. 'Local authorities are becoming more and more dependent on funds from the government for their budgets and that is what the government is offering them.'
Wall Street Journal
15 hours ago
- Business
- Wall Street Journal
Exposing ObamaCare Subsidy Fraud
Bigger government invariably creates more opportunities for fraud. Exhibit A is the ObamaCare insurance subsidy racket, which a new Paragon Health Institute report finds has resulted in some 6.4 million people this year receiving free health insurance to which they aren't entitled. Enrollment in the ObamaCare exchanges ballooned after Democrats sweetened subsidies in 2021. The 2021 law capped how much households are required to pay toward their premiums as a share of income on a sliding basis. Households get a tax credit that covers the difference between their plan premium and what they are required to pay.
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Clean Energy Projects Hinge on Senate Showdown
Democrats and clean energy advocates are ratcheting up pressure on a handful of Republican senators to salvage billions of dollars in projects, ahead of an expected vote next week on President Trump's megabill that targets critical subsidies for elimination. How fast to wind down clean-energy credits is one of several contentious pieces of the tax-and-spending legislation, along with reductions in Medicaid spending, that Republican party leaders need to iron out quickly to hit a July 4 deadline for delivering the bill to Trump's desk. While some Republicans are trying to protect funding for projects in their states, other GOP lawmakers see the subsidies as a ripe target for savings, as the party moves to extend and expand Trump's tax cuts.
