Zahid happy M40 group will benefit from higher tax relief limit

Deputy Prime Minister Ahmad Zahid Hamidi expressed satisfaction with the government's 2027 budget, which he claimed demonstrated the administration's dedication to addressing the concerns of the M40 middle-income group. The budget announcement reflected this commitment, as it proposed increasing the individual tax relief limit from RM9,000 to RM12,000, a change that had remained constant since 2010.

This increase in tax relief would benefit the M40 group, which had been facing financial pressure due to high expenditure commitments. Additionally, the budget also raised the minimum wage to RM2,000, starting from June 2027, but with a caveat - micro, small, and medium enterprises (MSMEs) with annual sales below RM50 million would be exempted from this new rate for a transition period.

This measure aimed to give these businesses time to adapt their business models. Zahid further highlighted that the budget would also support national exports, which were crucial for the growth of MSMEs and the development of local entrepreneurs. Notably, the ministry responsible for rural and regional development received an additional RM281.08 million, or a 2.27% increase, bringing its allocation to RM12.68 billion for the upcoming year.