PETALING JAYA: A cut in income tax and EPF contribution, up to RM6,000 EPF withdrawal; higher relief aid payments, tax exemptions for medical treatment, RM180 telecommunications credit and free data were among the personal incentives announced in the new federal budget announced today.
“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.Tengku Zafrul also said the Bantuan Sara Hidup a yearly welfare aid will be replaced with Bantuan Prihatin Rakyat “with higher rates of assistance”.
The government will also allow EPF members to withdraw their savings from Account 1 on a targeted basis.Other benefits for the rakyat include: 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.
You dont encourage people to withdraw their retirement savings but provide financial assistance