BUDGET 2021 HIGHLIGHTS
KUALA LUMPUR, Nov 6 (NNN-BERNAMA) — The following are the economic highlights of the Budget 2021 tabled in Parliament today by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.
The budget, themed “In Our Strength Lies Our Collective Victory”, is anchored on three thrusts, namely the people’s wellbeing, business continuity and economic resilience.
- The government plans to raise the ceiling for the COVID-19 Fund from RM20 billion to RM65 billlion to fund the KITA PRIHATIN supplementary assistance package.
- RM1 billion will be allocated to curb the third wave of the COVID-19 infections.
- The tax relief for personal, spouse and children’s medical care expenses for serious illness is increased to RM8,000 from RM6,000.
- RM1,200 in cash assistance will be disbursed to households with one child with a monthly income of less than RM2,500 with one child.
- Personal income tax is reduced by one percentage point for those earning RM50,001-RM70,000.
- Employees’ minimum EPF contribution is reduced to nine per cent starting January 2021
- The government has announced a targeted EPF Account 1 withdrawal facility of RM500 per month, up to RM6,000 for 12 months.
- Total withdrawal from EPF Account 1 will be RM4 billion.
- The government provides almost RM28 billion specifically for subsidies, assistance and incentives.
- The EPF allows withdrawal from Account 2 for the purchase of life insurance and takaful coverage products and for critical illnesses.
- Individual income tax relief of up to RM3,000 on Private Retirement Scheme contributions is extended until the year of assessment 2025.
- The government to provide RM4.6 billion to empower Bumiputeras.
- The government to allocate RM510 million for the purpose of financing to Bumiputera SMEs and micro SMEs through TEKUN Nasional and PUNB.
- The government to provide RM800 million through Bank Pembangunan Malaysia dan SME Bank’s capacity-building programme.
- Government allocates RM95 million for special micro-credit fund to empower women entrepreneurs
- A guidance programme for more than 2,000 women entrepreneurs will be provided under the Micro Entrepreneur Business Development Programme (BizMe).
- The government has allocated RM500 million to implement the National Digital Network (JENDELA) initiative in 2021.
- Full stamp duty exemption will be given for deeds of transfer and loan agreement for the first house purchase worth up to RM500,000.
- Full stamp duty exemption for deeds of transfer for rescue contractors and original buyers of abandoned housing projects has been extended by another five years.
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