Managing Rising Cost of Living

The concern on the rising of living cost is a global one. The living cost essentially will involve food supply, housing and transportation cost. In fact, there’re various factors that contribute to the rise in the price of goods. It is worrisome as it hurts the people, especially the poor. Besides that, increasing the fuel price is another concern as when fuel costs higher, the transportation cost will also be increased and then lead to higher price of goods and services.

living-cost

Thus, a reduction in the personal tax rates will appeal to high income earners working in Malaysia and it could attract more foreign talents to work as it will allow them to retain higher level of disposable income.

Meanwhile, a further increase in personal relief will also help in increasing the disposable income of the citizen. One of the reliefs that could be increased is through the contribution made on the EPF or life insurance premium. Currently, the maximum relief available is RM6,000 per annual with an additional relief of RM1,000 given on insurance premiums paid on annuity scheme.

In addition, the cost of maintaining a child has also been increased. Based on the latest revision, the current child relief is RM1,000 per annual for a child who is not married and below 18 years old. And, a maximum of RM4,000 is granted for a child who is 18 years old and above and is pursuing his higher level of education.

In my opinion, I truly believe that the taxpayers will also welcome to the current move. This would encourage them especially sandwich generation to remain the workforce and contribute to their household income which in turn to sustain the talent pool in the marketplace.

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