{"id":19990,"date":"2015-10-29T11:18:38","date_gmt":"2015-10-29T03:18:38","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=19990"},"modified":"2015-10-29T11:18:38","modified_gmt":"2015-10-29T03:18:38","slug":"middle-class-are-not-left-out-in-budget-2016","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/middle-class-are-not-left-out-in-budget-2016","title":{"rendered":"Middle Class Are Not Left Out In Budget 2016"},"content":{"rendered":"
Budget 2016\u2019s allocations are made with the objective of helping the low and middle income groups cope with their financial burdens and also to complement tax reliefs, said a tax consultant.<\/p>\n
Many middle income earners feel that they are getting no perks from the latest Budget, with them having the least benefits.<\/p>\n
Consultant Koong Lin Loong, who is also a Finance Ministry Goods and Services Tax working committee member, disagrees with such views, urging the people not to have a \u201cmicroscopic\u201d view of Budget 2016.<\/p>\n
\u201cMany people misunderstand (the Government\u2019s efforts). In order to have the full picture, a budget cannot be read a year by itself. It has to be studied as a continuation of past budgets,\u201d he added.<\/p>\n
Last year\u2019s Budget announcement\u2019s (Budget 2015) offer of 105% financing and waiver of stamp duty for first-time homebuyers of the 1Malaysia People\u2019s Housing Programme are still applicable in 2016.<\/p>\n
\u201cThese benefits can still be enjoyed next year,\u201d he said.<\/p>\n
Koong, who has been an auditor and tax consultant the past two decades, is a national council member of Malaysia\u2019s Institute of Taxation.<\/p>\n
Other perks include the tax relief for each child below 18 has been increased by 100% for 2016, up from RM1,000 to RM2,000.<\/p>\n
\u201cThe previous adjustment was in 2004 ,\u201d he said.<\/p>\n
The personal income tax cut by 1% to 3% announced last year would still applicable next year, Koong reminded.<\/p>\n
Together with other tax reliefs announced this year, the M40 group \u2013 those earning between RM3,860 and RM8,319 \u2013 would see a reduction of RM500 to RM600 in tax payable, he added.<\/p>\n
\u201cThe middle income group does not receive BR1M but this is a kind of \u2018indirect BR1M\u2019.<\/p>\n
\u201cTo me it is free money which increases their disposable income,\u201d he said, referring to the government scheme to ease the burden of the low income group.<\/p>\n
MCA deputy president Datuk Seri Dr Wee Ka Siong also sees that Budget 2016 is aimed at \u201clifting the financial pressure\u201d off the middle income group.<\/p>\n
\u201cIn MCA\u2019s proposal to the Cabinet, our first highlight was about giving more tax relief to this group.\u201d<\/p>\n
\u201cOur Prime Minister and Finance Minister Datuk Seri Najib Tun Razak has heeded our recommendations,\u201d he said during his opening speech at the Malaysian Economic Outlook seminar on Sunday.<\/p>\n
Stretch your Ringgit further\u00a0by using the right credit card<\/a> for your lifestyle.<\/p>\n