Finance Minister Tengku Zafrul Aziz said the government agreed to expand tax relief for treatment of serious diseases from RM5,000 to RM8,000. Taxpayers can also claim up to RM1,000 to cover vaccinations for a spouse and child to guard against pneumococcal, influenza and Covid-19 infections.
“The limit of tax relief on expenses for medical treatment, special needs and parental care is also increased from RM5,000 to RM8,000,” he said, adding that RM24 million has been set aside to address mental health and substance abuse programmes.
Tax exemption of up to RM1,000 was also provided for health screenings
Tengku Zafrul also said the Bantuan Sara Hidup, a yearly welfare aid, will be replaced with Bantuan Prihatin Rakyat (BPR) “with higher rates of assistance”.
Households earning less than RM2,500 will receive between RM1,200 and RM1,800, while single individuals, aged 21-years and above, and earn less than RM2,500 will receive RM350.
The BPR cash assistance is expected to benefit 8.1 million individuals, Zafrul said.
To help increase the take home pay, the minimum EPF contribution rate has been reduced to 9% from the previous 11%.
The government will also allow EPF members to withdraw their savings from Account 1 on a targeted basis.
“The amount allowed will be RM500 a month with a total of up to RM6,000 over 12 months.”
Other benefits for the rakyat includes:
- A one-off RM50 e-wallet credit for those between 18 and 20 years old. This will benefit 1.5 million youths.
- A higher tax exemption limit, raised from RM10,000 to RM20,000, for those who lost their jobs due to the economic slowdown caused by the Covid-19 pandemic. It applies to compensation paid for loss of employment for the assessment years 2020 and 2021.
- Personal income tax cut by 1% for those who earn between RM50,001 and RM70,000; the relief will benefit 1.4 million taxpayers.
- Tax exemption for sporting expenditure increased from RM2,500 to RM3,000
- A telecommunication credit of RM180 in the first quarter of 2021 will be paid to an estimated eight million people in the B40 category.
- Free benefits will be provided by telecommunication companies, at a total cost of RM1.5 billion.
- Tax relief of up to RM3,000 up to 2025 for those who have private retirement schemes.
- Government contributions to the Socso Employment Injury Scheme to provide coverage for about 40,000 delivery riders.
- My30 unlimited travel pass extended to Penang and Kuantan, and a new RM5 monthly unlimited travel pass for students and the disabled. This includes train services in the Klang Valley and elsewhere.