Budget 2016 revision: RM2,000 tax relief to cost government RM350 million in revenue

Prime Minister Datuk Seri Najib Razak today tabled a revised Budget 2016 at Putrajaya International Conventional Centre (PICC), focusing on several key issues like property and tax reliefs.

He raised a total of 11 points in the revised budget, which include reduction in the employees’ contribution to the Employees Provident Fund (EPF), a special tax relief of RM2,000 for those earning below RM8,000, retaining the GST rate at six percent, and the revision of the Gross Domestic Product projection for 2016.

Najib said the tax relief of RM2,000 to individual tax payers earning RM8,000 and below per month, for the 2015 assessment year would enable the individual to save up to RM475.

However, the move would cost the government RM350 million in revenue.

READ: Recalibration of Budget 2016 to focus on what is considered positive by the mart, people

As for tax evaders, Najib said the government would increase its auditing efforts. He also announced that the government would relax the imposition of penalties to encourage tax payers to settle their outstanding amounts.

Najib also touched on five major issues during his budget revision today.

Meanwhile, in his speech, Najib stressed that Malaysia was neither in an economic recession nor a technical recession. "What is most important is that this recalibration and restructuring will be firmly centred on two pillars, namely ensuring continued economic growth on the right track and caring for the people's welfare and well-being," he said. Najib, who is also the Finance Minister, presented several initiatives to deliver more money into the pockets of the people, address issues associated with the cost of living, continue with assistance for the needy and stimulate domestic economic activity for the benefit of the people.