Savings from the targeted RON95 subsidy are funding social protection and food security measures, not just a fiscal surplus, says MOF.
KUALA LUMPUR: Savings generated from the targeted RON95 petrol subsidy mechanism are not being retained solely as a fiscal surplus, the Ministry of Finance (MOF) said.
It said the savings from the subsidy rationalisation have enabled the government to increase targeted assistance for the majority of Malaysians to strengthen a more inclusive social protection system.
The government has also announced several measures to ensure the security of essential goods supply and support food producers — thereby safeguarding the food supply for the people — through the Ploughing Incentive for Paddy Farmers (IPKP) and the Paddy Harvesting Incentive.
“The government is also granting flexibility regarding the implementation of Phase 4 of the e-invoice until the end of 2027, as well as an interim import duty exemption for the re-importation of Malaysian-made goods until December 2026.
“During the transition period, up to Dec 31, 2027, no penalties will be imposed, and taxpayers are allowed to issue consolidated e-invoice monthly,” the ministry said in a written reply to the Dewan Negara published on the Parliament website yesterday.
The MOF was responding to a question from Senator Datuk Koh Nai Kwong on whether the fiscal savings from the targeted RON95 petrol subsidy in April 2026 were channelled towards the Small and Medium Enterprise (SME) Transition Grant.
The ministry said Phase 1 of the e-invoice began on Aug 1, 2024, involving large companies with annual sales exceeding RM100 million.
This was followed by Phase 2 for companies with annual sales of more than RM25 million up to RM100 million, Phase 3 for those with annual sales of more than RM5 million up to RM25 million, and Phase 4 for businesses with annual sales of up to RM5 million.
To date, more than 230,000 taxpayers have adopted the e-invoice system, with 1.5 billion e-invoices issued.
“This reflects the strong level of acceptance among taxpayers in complying with and supporting the e-invoice initiative,” the ministry said.
