Delay mega-projects and tax ultra-rich to raise funds for subsidies

The government has no choice but to prioritise the plight of the people

K Veeriah

It is refreshing that the government is mulling over delaying mega-projects to free up funds for subsidies to curb rising living costs.

For once there is an admission by the economic affairs minister that the inflation rate for May would have been 11.4% instead of 2.8% had it not been for fuel, utility and food subsidies totalling RM51bn for 2022.

So this is the conundrum – remove subsidies and force people to suffer the pain of higher inflation, or continue subsidies to ease their plight.

If subsidies are removed, people faced with higher living costs would be forced to agitate for financial relief, including demanding higher wages. The alternative is continued subsidies as a mechanism to lighten the impact of rising living costs.

Besides suspending mega-projects, the government needs to juggle its expenditure budget.

As it is, billions of ringgit have been allocated to ministries that do little to ease the economic pressures on the people. The government should re-allocate these financial resources to provide more aid to the public.

Granted, large subsidies amounting to almost RM80bn this year cannot be in place perpetually.

Still, the government needs to take stock of pressing issues related to food security. Sadly, farmers are being driven out of the land on which they have toiled to produce food for the people just so that developers can rake in profits.

And when our sea is reclaimed, ostensibly for the benefit of future generations, it destroys rich breeding grounds for marine life. This inevitably results in depleting seafood and a spike in the prices of fish like even the cheaper ikan kembung (Indian mackerel).

READ MORE:  Penang South Reclamation: Food security vs another dodgy mega-project?

Our economic planners need to formulate policies that will generate revenue, including taxes, to ease the government’s cashflow position. Some have suggested taxing ultra-rich individuals and companies through wealth and capital gains taxes.

Caught between a rock and a hard place, the government has no choice but to prioritise the plight of the people.

K Veeriah is a veteran trade unionist based in Bukit Mertajam, Penang



AGENDA RAKYAT - Lima perkara utama
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Mike
Mike
1 Jul 2022 11.55am

Annual government subsidies now RM80 billion, but what about extra earnings from patrol fuel sold to the world? Petronas earnin report must be made public to avoid potential hanky panky.

Gursharan Singh
Gursharan Singh
30 Jun 2022 9.06pm

First need may be to know the quantum of wealth of the rich and this may be possible only if Estate Duty Tax can be reintroduced as once known then sources of wealth can be identified and taxed.

Another mode could be
ABOLISH ALLOWANCES AND BE MADE PART OF SALARIES and thus TAXABLE.
Would those in power and high wealth be willing to do?

Bless all