Zahid happy M40 group will benefit from higher tax relief limit

 The deputy prime minister says this will be welcome relief for middle-income households facing high living expenses and financial commitments.

Deputy prime minister Ahmad Zahid Hamidi welcomed the exemption given to micro, small and medium enterprises with annual sales below RM50 million from the RM2,000 minimum wage rule.

PETALING JAYA:

Deputy prime minister Ahmad Zahid Hamidi said the 2027 budget reflected the government’s commitment to addressing the concerns of the people, including the middle-income (M40) group.

He said the measures announced in the budget could ease the financial burden of M40 households facing pressure from high expenditure commitments.

“So far, in terms of income surplus and purchasing power, they (the M40 group) have been under considerable pressure due to their high commitments,” he said after the tabling of the budget in the Dewan Rakyat, Bernama reported.

Under the 2027 budget, the individual tax relief limit will be increased to RM12,000 from RM9,000, a ceiling which had remained unchanged since 2010, benefiting the M40 group.

Zahid also welcomed the increase in the minimum wage to RM2,000, effective June 2027, with micro, small and medium enterprises with annual sales below RM50 million exempted from the new rate to allow them time to adjust their business models.

“The same goes for graduates and skilled workers, who will be offered premium wages,” he said.

Zahid said the budget as a whole also focused on increasing national exports, which depended in part on the development of micro, small and medium enterprises and strengthening the capabilities of local entrepreneurs.

Zahid, who is also rural and regional development minister, expressed his appreciation for the RM12.68 billion allocation to the ministry for next year, an increase of RM281.08 million, or 2.27%, from the RM12.40 billion this year. - FMT