– Bernama
IPOH: More can be done for the middle-income group (M40) beyond the two-percentage-point reduction in income tax announced in Budget 2023.
Factory operator Nurul Hidayah Husni, 29, said she earned about RM3,000 a month and could do with a bit more help.
“My husband earns about the same as me. We have two schoolgoing children.
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“The tax reduction might not mean a lot for people who don’t have a family but for us, it means we can put more into our children’s savings, including their medical bills and education fees.
“I was expecting more, perhaps additional vouchers to buy groceries. But I’m still glad that there is something for us – we are usually the forgotten ones,” she added.
In tabling Budget 2023, Prime Minister Datuk Seri Anwar Ibrahim announced that the personal income tax rate would be lowered by two percentage points for those in the RM35,000 to RM100,000 annual income band.
This, he said, would benefit 2.4 million taxpayers, who will have additional funds of up to RM1,300.
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Sales executive WK Lee, 37, who said his salary is on the higher band of the M40 group, said the deduction was good for him.
“As I am single, I think I can have some excess money for myself, which I will probably use to either invest or save for rainy days.
“But the cost of living is still high, especially when eating out in Ipoh, so each sen matters.
“I feel for some of my friends, especially those with children, who are at the lower end of the T20 group as they will probably feel left out,” he said.
Florist N. Satchiathanandhan, 38, feels that the tax deduction does not make much difference.
“I earn between RM5,000 and RM6,000 a month. The 2% deduction will be about RM100 to RM120. That is how much I spend on fuel for a week because I deliver flowers as well.
“For people earning between RM2,200 and RM3,000, the deduction will be less than RM100,” he said, adding that the price of groceries had increased significantly.
“So, I don’t think it will make much difference ... it is a great idea, but if the deduction could be six percentage points, then I think that would be a game-changer,” said Satchiathanandhan.
