Sunday, October 29, 2017
More money in the people’s pockets
Salleh Said Keruak
In Budget 2018 the tax rate for middle-income people with taxable income of between RM20,000 and RM70,000 would be lowered by 2%. This would generate an additional disposable income of RM1.5 billion and this extra money would be contributing back to the economy via consumption. At the end of the day, businesses would make more money as well.
This measure results in RM300 to RM1000 additional disposable income those in this income bracket.
Prime Minister Najib Tun Razak’s focus is on how to help the needy while at the same time balance the accounts so that the country can still earn enough to fuel development. Populist policies such as removing all taxes and offering everything free to the people is not only not realistic but not sustainable as well. We need a balance between inflow and outflow and not cut inflow and increase outflow.
The Prime Minister knows that budgets must take into consideration many factors. Just to gain support and become popular while jeopardising the future of the country is very irresponsible. Plans must take into account both short-term and long-term needs. And that is what Budget 2018 is all about.