Higher rebate leads to tax-free income for 100,000
Star Online
THE proposed higher tax rebate for the lower middle-income group will save some 100,000 taxpayers from paying taxes and income from interest on savings will be tax exempted.
The tax rebate for those with taxable income of RM35,000 and below will be raised from RM350 to RM400 per person and there will be full import exemption on several food items, currently with taxes ranging from 2% to 20%, as well as a reduction in import duties of between 5% and 30% on home kitchen appliances.
Malaysian Employers Federation executive director Shamsuddin Bardan said the tax relief on perquisites provided by employers to employees would not encourage productivity.
“Such benefits should not be taxed at all, the exemption should be 100% and not RM2,400 per year and so on,” he said, adding that some employers want to reward their workers RM10,000 but the tax relief was only RM2,000.
Shrugging off the RM2,400 childcare allowance as too little, Shamsuddin proposed that the Government instead set up more childcare centres so that more women could enter the workforce and Malaysia could reduce its dependence on foreign workers.
He noted though that the Government’s incentive for training and enhancement of skills was a move in the right direction.
MTUC president Syed Shahir Syed Mohamud said the Government had not met its main request for private sector employees to get a cost of living allowance of at least RM300 as well as a minimum wage.
On the exemption of import duty on certain foodstuff and consumer durables, he said it would be better if it were for non-luxury items.
