Budget 2016 revision
Prime Minister Datuk Seri Najib Tun Razak has announced a revised Budget 2016 to optimise the country’s developmental and operational expenditures in the face of slower economic growth. Some of the budget revision highlights as below :
- EPF contributions by employees to be reduced by 3%. This is expected to increase private sector spending by RM8bil.
- Tax relief of up to RM2,000 to those with income RM8,000 a month or lower. Two million taxpayers to benefit.
- To reduce cost of living, Govt to liberalise APs for agricultural products including coffee beans and meats.
- Domestic Trade, Cooperatives and Consumerism Ministry ordered to increase enforcement and action against unethical traders.
- 5. 30% of contributions to the human resource development fund to be utilised for skills training, including those who are unemployed.
- MyBeras programme to be introduced until Dec 2016. Each hardcore poor family will be given 20kg of rice every month.
- The Government will update the management system of foreign workers, with levies clustered into two categories, not including foreign maids.
- Government will exercise prudent spending on supplies and services and to continue with grant rationalisation.
- Development budget to focus on projects and programmes that place the people first, have high multiplier effect and reduce imports.
- Development financial institutions and Government venture capital funds to increase allocations by RM6bil for benefit of start-ups and SMEs.
- GLCs urged to implement initiatives to reduce the income gap between senior management and workers, to be monitored by the Economic Planning Unit.
Tax Relief RM2,000
- special tax relief of RM2,000 to individual taxpayers with a monthly income of RM8,000 and below
- It will apply to the year of assessment for 2015.