Themed ‘Keluarga Malaysia, Makmur Sejahtera’ (a prosperous Malaysian family), the Budget 2022 has the largest allocation to date – at RM332.1 billion (bn). This amount is 3% higher compared to last year.
Tabled by our Finance Minister, the budget is aimed to boost the recovery for the community and business sectors aimed to uplift the community and business sectors that were badly impacted (an understatement) by the microscopic virus, Covid-19.
“Sure onot?”, some of you may ask.
In case you didn’t get the chance to follow the Budget 2022 announcement, here are some of the key highlights that you can look forward to:
1. Bantuan Keluarga Malaysia (BKM), an improved financial aid scheme
- Households with a monthly income of less than RM2,500 and have 3 children or more will receive RM2,000.
- Single-parent households with a monthly income of up to RM5,000 will receive an extra RM500.
- Senior citizen households will receive an extra RM300.
2. RM150 e-wallet credit via eStart Programme
Through eStart, youths aged between 18 and 20, as well as full-time tertiary students, will receive a one-off transaction of RM150 that will be deposited into eligible individuals’ e-wallet account. Details on which e-wallet services will be participating haven’t been provided yet.
3. Discounts on PTPTN Repayment
Effective from 1 November 2021 to 31 April 2022, the gomen will offer a discount of:
- 15% to those who wish to make a full settlement.
- 12% to those who want to settle at least 50% of their loan balance in a single payment.
- 10% to those who make repayment through scheduled salary deduction or debit.
4. Vehicle sales tax (SST) exemption extended again
Originally scheduled to end on 31 December 2020, the SST exemption was first extended to 30 June 2021, and then to 31 December 2021, and now to 30 June 2022.
- 100% exemption for locally-assembled (CKD) vehicles
- 50% for fully-imported (CBU) vehicles
5. 100% road tax exemption for OKUs and EVs
- Starting from 2022, the gomen has agreed to fully bear the cost of Motor Vehicle Licences (LKM) of all private vehicles owned by people with disabilities (OKU).
- To support the development of the local electric vehicle (EV) industry, a 100% road tax exemption will be given for EVs.
6. Baby car seat purchases will be subsidised
Only applicable for B40 families, the purchase will be subsidised by 50% or up to RM150.
7. Employees Provident Fund (EPF) contribution rate of 9% will be extended
According to the Finance Minister, the EPF will extend the period to reduce the EPF minimum contribution rate from 11% to 9% until June 2022. This is to increase money in the hands of the people.
8. Real Property Gains Tax (RPGT) exemption
RPGT would no longer be imposed for disposals by individual citizens, permanent residents and companies from the 6th year onwards.
9. Monthly free sanitary kits for B40 teenage girls
Free basic feminine hygiene kits will be given monthly to 130,000 teenage girls from the B40 group. The distribution will be accompanied by reproductive health campaigns, educational initiatives at schools.
10. All about income tax reliefs
- Special individual income tax relief for domestic tourism expenditure up to RM1,000 is extended until the Year Of Assessment 2022.
- Income tax relief of RM2,500 is given on the cost of purchase and installation, rental and hire purchase of facilities, as well as payment of subscription fees for EV charging facilities.
Additionally, the gomen also intends to:
- extend the special individual income tax relief of up to RM2,500 on the purchase of mobile phones, computers and tablets until 31 December 2022.
- expand the scope of individual income tax relief for health screening expenses to cover the cost of consulting services of registered psychiatrists, clinical psychologists and counsellors.
- extend the individual income tax relief up to RM3,000 for the payment of daycare and kindergarten fees until the year of assessment 2023.
- extend tax relief of up to RM4,000 to EPF contributors including voluntary contributions such as those who are self-employed in the gig sector.
11. Civil servants get special financial assistance
To show appreciation for the sacrifices made by civil servants in carrying out their duties especially while the country is facing the challenges of the Covid-19 pandemic, a special financial aid of RM700 will be given to 1.3 million civil servants of Grade 56 and below.
On top of that, the government pensioners are set to receive one-off RM350 cash.
*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.
- UPDATED 01 NOV 2021 – Article BY NISYA AZIZ & NOR AZIAH