Gan said the budget would also improve the government’s revenue.
He said by raising the Bantuan Rakyat 1Malaysia by RM300 to RM950 from last year’s RM650, the government would help the people, especially those in the lower income, adapt to the higher cost of living and face the fuel subsidy reduction
“The budget will also benefit the people with its early announcement of personal income tax cut from one per cent to three per cent next year, instead of 2016 and that will save some 300,000 Malaysians from paying their taxes,” he told a media conference at Deloitte TaxMax here Monday.
The one-day seminar, attended by 400 participants, gave an in-depth look at the Budget 2015.
Gan, who is one of the panellists, said the government’s effort would help mitigate the dampening effect of cost-push inflation and the Goods and Services Tax (GST) on household disposable income.
Deloitte Malaysia country tax leader, Yee Wing Peng, said the government was putting more effort to reduce national debt and raise the country’s fiscal credibility.
“Instead of broad-based subsidies, we are shifting to direct support to not only protect the lower income group but help reduce the country’s fiscal spending.
“Budget 2015 is also set to usher in new plans to ensure we reach our high-income status in the next five years,” he said.
Yee said although there would be some pain post-GST implementation he hoped to see the nation’s coffers in the black.
He said the government had also increased more zero-rated and exempted items in the GST list to over 900 items.
“The list is the longest when compared with other countries that are also implementing the tax.
“This shows the government’s concern for the people,” he said.
— BERNAMA
