**Rafizi: Two-Tier RON95 Subsidy, Income-Based Criteria**

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Post on Oct 21, 2024

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Rafizi's Big Idea: Two-Tier RON95 Subsidy, Income-Based

You know how the price of petrol keeps going up? It's been a pain in the neck for everyone, especially with the rising cost of living. Well, Rafizi Ramli, the man behind the PKR economic team, has a solution: a two-tier RON95 subsidy.

But what's that all about? Hold on, let me break it down for you.

What's the Deal with the Subsidy?

Right now, everyone gets the same subsidy on RON95 petrol, whether you're driving a fancy car or a beat-up old banger. Rafizi's idea is to target the subsidy towards people who really need it.

So, how do you decide who needs it more? Enter the income-based criteria. This means the amount of subsidy you get would depend on how much money you make.

Think of it like this: the higher your income, the smaller your subsidy. The lower your income, the bigger your subsidy. Makes sense, right?

The Good, the Bad, and the Ugly

Now, like any good idea, there are pros and cons to consider.

Pros:

• More targeted assistance: It ensures the subsidy reaches those who really need it, instead of everyone getting a slice of the pie.
• Fairer distribution: It's a more equitable way to manage the subsidy, as it takes into account the financial situation of individuals.
• Potential for savings: This could save the government money in the long run, which can be used for other important stuff like education and healthcare.

Cons:

• Implementation challenges: How do you determine income levels? What about people who aren't formally employed?
• Potential for abuse: There's always the risk of people manipulating the system to get a bigger subsidy.
• Administrative burden: Implementing an income-based system could be a huge administrative headache for the government.

So, What's the Verdict?

Rafizi's two-tier RON95 subsidy proposal is an interesting idea. It might be a good way to make the subsidy system more efficient and fairer, but it's definitely not a simple fix.

Like any policy, it needs to be carefully considered and implemented with a clear plan to avoid unintended consequences.

What do you think? Let me know your thoughts on Rafizi's proposal. Do you think it's a good idea? What are the potential challenges?