Here's A TL;DR Of How M40 Citizens Can Benefit From Budget 2023 Measures
"This move is important to ensure the benefits reach the people and the groups targeted by the government," said Anwar.
By Timothy Tuan — 19 Apr 2023, 03:05 PM
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim tabled the revised Budget 2023 in the Dewan Rakyat on 24 February
The revised Budget 2023 sees an increased allocation of RM388.1 billion, with RM289.1 billion for operating expenditure and RM99 billion for development expenditure, including RM2 billion in contingency reserves.
Among the efforts for Budget 2023 include implementing various measures that will help uplift the M40 group, as the government hopes to deal with every group efficiently and fairly, while helping to combat the rising living cost.
"This move is important to ensure the benefits reach the people and the groups targeted by the government," he said, as quoted by Malay Mail.
1. A two percentage point income tax reduction for Malaysians making between RM35,000 and RM100,000 a year
A tax rate reduction of up to two percentage points will be implemented to help increase the disposable income of M40 individuals and families. These reductions are expected to provide approximately 2.4 million taxpayers with excess disposable income of up to RM1,300 yearly.
2. Up to RM64 billion for subsidies, assistance, and incentives to minimise cost of living
This allocation will also help subsidise the cost of essential items like RON95 petrol, sugar, electricity, and cooking oil.
3. First-time homeowners will enjoy stamp duty exemption
First-time homeowners will enjoy full exemption from stamp duty for houses worth RM500,000 and below. Meanwhile, those purchasing houses valued from RM500,001 to RM1 million by 31 December 2023 will enjoy 75% off their stamp duty.
4. A RM115 million incentive to support Rapid KL's My50 Unlimited Travel Pass
The My50 Unlimited Travel Pass offers 30 days of unlimited rides on Rapid KL LRT, MRT, Monorail, BRT, Rapid KL bus, and MRT feeder bus services in the Klang Valley.
About 180,000 commuters will benefit from the My50 Unlimited Travel Pass.
5. An increase in medical tax relief limit
The government is increasing the tax relief limit on medical treatment expenses from RM8,000 to RM10,000.
6. Human Resource Development Corporation (HRDCorp) to fund the upskilling of employees
The HRDCorp will fund RM1 billion to implement training programmes for employees under registered employers. This grant will help 800,000 employees learn how to increase their work productivity and income opportunities.
7. RM1.7 billion to be allocated as financial assistance for micro-entrepreneurs
Micro entrepreneurs and small businesses will be provided access to funds totalling RM1.7 billion through agencies such as Bank Negara Malaysia (BNM), BSN, and TEKUN.
8. BNM will fund RM1 billion to help small and medium-sized enterprises (SME) digitise their business
SME Automation and Digitalisation Facility (ADF) is a financing facility under Bank Negara Malaysia to help SMEs automate business processes and digitise operations to increase productivity and efficiency.
Under the RM1 billion allocation, SMEs can purchase equipment, machinery, and computer hardware and software, as well as implement IT solutions and services, technology support services, and other intangible assets to help digitise their business.
9. A RM102 million allocation to support the local art scene
Known as Digital Content Fund (Dana Kandungan Digital), this fund is set up to support the marketing of local art products as well as encourage the production of more creative works, including music, theatre, traditional performing arts, and more.
