However, I would think that the increment is insufficient as compare with the increase of the cost of living. An increment of RM1,000 per annum is only approximate to RM80 per month. Is this sufficient for us to cope with the rising cost of our daily spending (excludes luxury spending)?
I think the personal relief should be higher ranging from RM10,000 to RM12,000 per annum. Besides that, government should also increase the child relief for taxpayers in order to relieve the burden of taxpayers having children. Is the child relief of RM1,000 per annum still sufficient in nowadays?
Besides that, the government also propose for a reduction of maximum personal income tax rate from 27% to 26%. The reduction benefits those middle and upper income group taxpayers because the maximum personal income tax rate of 27% only taxed for taxpayers with yearly income of RM100,000 and above. As one of the taxpayer mentioned in an interview, it is good to have some saving but it is nothing to shout about. The move is generally not appreciated by those group of taxpayers as the saving is insignificant to them.
On the contrary, if the personal income tax rate would remain at 27% but the personal relief could be higher, it will help larger group of taxpayers.
In conclusion, the increment in personal relief is a welcome measure but it is also nothing to shout about.
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