Budget 2015 has reinforced the middle income squeeze as it emphasises the fact that such households will bear the brunt of the goods and services tax (GST), a state-owned think tank said.
Penang Institute said that this is as yet again, households earning between RM55,000 to RM100,000 are deemed too rich for welfare aid, but barely benefit from income tax cuts.
"Middle income households will neither receive Bantuan Rakyat 1Malaysia nor benefit much from tax cuts; but will have to pay GST. Consequently, they will end up having less cash – approximately RM 708 per annum," it said.
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