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PETALING JAYA: A number of personal benefits were included in the new federal budget announced today, including a cut in income tax and the contribution to the EPF; new EPF withdrawals of up to RM6,000; higher aid aid payments, various tax breaks for medical treatments; a telecommunications credit of RM180 and free data; and RM 150 e-wallet credit for youth.
Finance Minister Tengku Zafrul Aziz said the government agreed to extend the tax allowance for the treatment of serious illnesses from RM5,000 to RM8,000. Taxpayers can also claim up to RM1,000 to cover vaccinations for a spouse and child to protect against pneumococcal infections, influenza, and Covid-19.
“The tax allowance cap on medical treatment, special needs and parental care expenses was also increased from RM 5,000 to RM 8,000,” he said, adding that RM 24 million has been set aside to address mental health programs. and substance abuse.
A tax exemption of up to RM1,000 was also granted for medical examinations
Tengku Zafrul also said that the Bantuan Sara Hidup, an annual welfare aid, will be replaced by the Bantuan Prihatin Rakyat (BPR) “with higher rates of attendance.”
Households earning less than RM2,500 will receive between RM1,200 and RM1,800, while single people, age 21 and older and earning less than RM2,500 will receive RM350.
The BPR cash assistance is expected to benefit 8.1 million people, Zafrul said.
To help increase take-home pay, the minimum contribution rate to the EPF has been lowered to 9% from 11% previously.
The government will also allow EPF members to withdraw their savings from Account 1 in a specific way.
“The allowed amount will be RM 500 per month with a total of up to RM 6000 for 12 months.”
Other benefits for rakyat include:
- A one-time RM 50 e-wallet credit for those ages 18-20. This will benefit 1.5 million young people.
- A higher tax exemption limit, increased from RM10,000 to RM20,000, for those who lost their jobs due to the economic slowdown caused by the Covid-19 pandemic. Applies to compensation paid for job loss for evaluation years 2020 and 2021.
- Reduction of personal income tax by 1% for those earning between RM 50,001 and RM 70,000; the relief will benefit 1.4 million taxpayers.
- The tax exemption for sports expenses increased from RM2,500 to RM3,000
- A telecommunications credit of RM180 will be paid in the first quarter of 2021 to approximately eight million people in the B40 category.
- Telecommunications companies will provide free benefits at a total cost of RM 1.5 billion.
- Tax relief of up to RM3,000 until 2025 for those with private retirement plans.
- Government contributions to Socso’s Work Injury Program to provide coverage to some 40,000 passengers.
- My30 Unlimited Travel Pass was extended to Penang and Kuantan, and a new RM5 Monthly Unlimited Travel Pass for Students and the Disabled. This includes train services in the Klang Valley and elsewhere.
