KUALA LUMPUR: In giving input on how they want the 2018 Budget to be formulated, Malaysians have asked Prime Minister Datuk Seri Najib Razak to consider tax exemption for middle-income earners and to develop efficient public transportation systems in other states.
Through the microsite, bajet2018.najibrazak.com, the public had also, among others, asked the government to look into increasing income for villagers through digital economy.
Najib, who is also Finance Minister, said since the Goods and Services Tax was introduced in 2015, the government had reduced the rate of individual income tax of between one and three per cent.
Through this move, 300,000 people no longer had to pay income tax, he said.
He added that families earning RM4,000 monthly no longer have a tax burden and the maximum taxation rate of 26 per cent had been reduced to 24, 24.5 and 25 per cent.
"I understand that many have asked for tax exemption to help address the cost of living of the middle-income group, from increasing tax exemption for sports activities to tax exemption of private vehicle maintenance.
"In the 2016 Budget, I also announced tax relief for children who provide for their parents, of RM1,500 each for the mother and father, as well as increasing the tax relief from RM6,000 to RM8,000 for each child above 18 years old pursuing tertiary education," he said on his blog, NajibRazak.com, today.
He said in the recalibrated 2016 Budget, he had announced a special RM2,000 tax exemption for individual taxpayers earning less than RM8,000 and in the 2017 Budget, announced a lifestyle tax relief of up to RM2,500 annually for purchases of reading materials, computers, smartphones, sports equipment and gym membership.
"These are just some of the initiatives by the government to ensure help the middle-income group, ensuring that their wellbeing continues to be taken care of.
"I am confident that #Bajet2018 will continue to assist those in need, and at the same time be inclusive and holistic to the needs of all."
The dedicated website for the 2018 Budget has received close to 14,000 suggestions from the public in 15 days.
Najib said among the "hot topics" on the microsite were employment, cost of living, education, taxation, business and finance, transportation and infrastructure, which he said indicated the people's priorities.
"Alhamdulillah (praise be to God), a total of 13,837 ideas and suggestions have been received through the #Bajet2018 crowdsourcing campaign which took place for 15 days, from Sept 4 to 18.
"I am happy that many have taken this chance to share with me the challenges they face, apart from giving their suggestions to be considered in the formation of #Bajet2018," he said.
Quoting ideas from several contributors, Najib said Mohd Saiful Ridzuan had suggested for the Klang River to be cleaned up and developed, making it a main mode of transportation which would connect the surrounding cities.
Najib also said many had praised the mass rapid transit and suggested that the government develop a more efficient transportation system in high-populated states to tackle traffic congestion.
"To help rural villagers increase their income, (a contributor by the name of) Freddie had suggested for a collaboration between Tenaga Nasional Bhd and villagers to install solar panels on their houses.
"I was also happy to read suggestions from villagers who expressed desire to get themselves involved in digital economy and hoped that the opportunity would not be not be limited to just urban dwellers.
"To ensure that this could happen, Mohamad Zulhairin Raihan had asked that the government upgrade and increase internet speeds in rural areas."
He said the government would review and consider seriously the suggestions given, as an appropriate step towards democratising the process of forming the country's budget, a document that would bring a huge impact to the country's direction.
"Thank you once again to all those involved," Najib said.