00:00Two economists have welcomed former Finance Minister Lim Guaneng's proposal that the individual income tax relief threshold be raised from RM9,000 to RM12,000 with one calling for a comprehensive review of tax-deductible items.
00:16University Malaya Senior Lecturer Go Lim Tai said the proposal was reasonable given that the personal tax relief threshold has not been revised in 15 years despite significant increases in living costs.
00:27However, he said a more meaningful approach would be to review the relief categories and thresholds as a whole rather than adjusting a single figure in isolation to better reflect current consumption patterns and cost pressures.
00:42Similarly, Ida Yasin of Pucha Business School said the proposed measure would increase beneficiaries' disposable income, helping them manage the rising cost of living.
00:52She added that lower- and middle-income groups would likely spend the extra money locally, thus supporting the domestic economy.
01:00Go cautioned, however, that this outcome was not guaranteed unless the policy explicitly encouraged that the additional income be directed toward local goods and services.
01:10On January 2nd, Lim said he would propose to Prime Minister Anwar Ibrahim that the individual income tax relief threshold be increased from RM9,000 to RM12,000, noting that the current rate no longer reflects today's cost of living.
01:24Natasha Bust, FMT.
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