By Karen Bong
KUCHING, Feb 25: Kuching South City Council (MBKS) Mayor Dato Wee Hong Seng lauds the Federal government’s measures to generate tax revenue from higher-income groups by raising the tax rate for high-income earners (T20 group) and the introduction of a luxury goods tax.
Wee said aiming taxes at the rich would have positive implications, especially to boost the government’s revenues, which can strengthen the economy and help the lower-income group.
“Personally, I think this is quite good and reasonable as high net-worth earners should contribute to the society and nation building,” he said in his ShallWeeTalk live session on his social media today.
In the Budget 2023 announcement yesterday (Feb 24), Prime Minister Datuk Seri Anwar Ibrahim said the government would increase the tax rate for high-income earners by 0.5 to two percentage points for the income tax bracket of RM100,000 to RM1 million.
Taking a more progressive approach to broaden the tax base by targeting those who can afford to pay, Anwar added that the government has also proposed to impose a tax on luxury goods, such as watches and fashion items, starting this year, based on the types of luxury items.
The government also proposed to impose excise duties on liquid nicotine used in e-cigarettes and vapes, given that the industry is estimated to be worth some RM2 billion.
On the overall revised budget, Wee said the budget is not perfect. Still, at least it provides financial incentives to care for the B40 and M40 groups, working parents, children’s welfare, and assistance and subsidies for small and medium enterprises (SMEs), all of whom are still struggling to cope with rising costs in the post-pandemic era.
“I think it is only fair to take care of people’s immediate needs and, more importantly, to put the unity government administration on a strong foundation with transparency and ensure financial stability to drive economic growth.
“Only a stable government and financial position will enable the government to fulfil the other needs of the people. This is the reality,” he said, adding that 2023 will be full of challenges following three years of the Covid-19 pandemic.
Among the key takes from the budget include:
- Childcare fee subsidy of RM180 per month to government servants with eligible household income limit to be increased from RM5,000 to RM7,000.
- RM64 billion in subsidies, aid and incentives to minimise the cost of living.
- Households with income less than RM2,500 are eligible to receive Sumbangan Tunai Rahmah up to RM2,500, depending on the number of children.
- RM200 in e-credit for youth.
- The income tax rate for individuals in the RM35,000-RM100,000 income band will be lowered by two percentage points.
- RM700 one-off Aidilfitri special financial aid for eligible civil servants and RM350 for pensioners.
- Waiver of test fees for B2 motorcycles, buses, taxis, and e-hailing licences.
— DayakDaily
