PETALING JAYA: Waiving revenue tax for members of the B40 and M40 teams working past the age of 60 would go an extended solution to assuaging their monetary burden, says an economist.
Zahariah Sahudin of UiTM Puncak Alam’s enterprise and administration college stated older Malaysians are projected to make up 15% of the inhabitants in 2035, from 7% presently.
She stated waiver of revenue tax, which might enable them to avoid wasting for retirement, is unlikely to dent the nation’s funds considerably as these senior residents signify solely a small share of the inhabitants and labour pressure.
“At this age, they don’t have social safety from the Social Security Organisation (Socso) anymore.
“If something occurs to them, they must pay hospital payments on their very own, and that’s why they would want extra cash. The older they’re, the chance of being unwell will increase,” Zahariah informed eNM.
On Feb 7, Social Protection Contributors Advisory Association Malaysia president J Solomon urged the federal government to implement the coverage to lighten the burden of senior residents.
He stated Prime Minister Anwar Ibrahim had beforehand admitted that 71% of lively EPF contributors don’t have sufficient cash to retire.
The proposal would assist people to have extra disposable revenue, stated Solomon.
Yeah Kim Leng of Sunway University stated the proposal aligns with the federal government’s intention to make sure residents have enough retirement financial savings.
“Given that solely those aged above 60 are eligible, it will probably have minimal influence on the federal government’s yearly tax assortment,” he stated.
Yeah stated such a coverage would have to be supplemented by a revision to Socso tips to make sure protection for your complete working inhabitants, irrespective of age.
