Mixing sour with the sweet

BY reducing subsidies for fuel and sugar, the government is moving in the right direction.

However, the government should ensure that traders and manufacturers do not raise prices unjustifiably as the impact of the reduction of these subsidies on food products would be minimal, in many cases less than one sen.

Marseille

As fuel (petrol, diesel and liquefied petroleum gas) forms the biggest share of the subsidy bill, a higher price more reflective of the market price will encourage the public and industries to use less fuel.

This is important because fuel is a depleting resource and if consumption continues unabated, we will soon be a watches-o net importer of crude oil in the next few years. Furthermore, income from fuel contributes more than 50 per cent to the government's revenue.

Sugar is nothing less than a toxic substance. Thus, it makes no sense to subsidise a substance that causes so many health problems when the government can better spend the money elsewhere.

It is important that the elimination of subsidies be part of a comprehensive plan for sustainable national financial management. The government must be seen to cut waste and corruption.

S.M. MOHAMED IDRIS

President

Custom Cufflinks

Consumers Association of Penang

Other articles:
http://wdthbvcdf.livejournal.com/11658.html
http://jq169.net/Blog/View/?537