TUMPAT: The Variation of Prices (VOP) clause, if implemented, will only apply to contractors whose projects are affected by the targeted subsidy.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the contractors, however, will need to justify how the increased diesel prices have impacted them.
The data, he said, must be shared with the Construction Industry Development Board (CIDB).
"Contractors can justify if there is a sudden increase (in prices) and inform CIDB.
"CIDB will discuss with the Finance and Works ministries for a suitable mechanism to help the contractors," he told a press conference after visiting Pengkalan Kubor Immigration, Customs, Quarantine and Security (ICQS) here today.
On the request by state Customs Department for a new branch in Gua Musang, he said the government is still studying the matter.
"We are aware of the problems facing by the state department related to smuggling activities and will consider the request," he added.
Later, Amir Hamzah, accompanied by Kelantan Customs director Wan Jamal Abdul Salam Wan Long, visited several petrol stations in Pengkalan Kubor areas.
Yesterday, Amir Hamzah said the government has agreed in principle to implement the VOP clause to help contractors to cushion the impact of the targeted subsidy approach.