Budget 2016: Everything You Need To Know

Written by Iris Lee Illustration by Achmad Baraja

Prime Minister Datuk Seri Najib Tun Razak tabled Malaysia’s 2016 budget today with the theme, “Prospering the Rakyat”, this year’s offering aims to address issues that are burdening Malaysians, such as the rising cost of living and the unaffordable housing.

The day before the announcement, officials from the Ministry of Finance (MoF) hinted that there’s something for everyone in the 2016’s Budget. Some of the announcements that created the most buzz among Malaysians are:

More than 8,000 brands of medication will be added on the zero-rated Goods and Services Tax (GST) list. These medications are used to treat 30 types of illnesses.
More food items, including dhal and soyabean will be added in the zero-rated list, making groceries much cheaper for the rakyat.
More tax reliefs for all taxpayers, especially the M40 (the middle-income group), such as higher ordinary child relief, and other child reliefs.
Brand new tax reliefs for the sandwich generation, where they are allowed to claim RM1,500 for each parent above 60 years old, under their care. This will help the middle-class who are struggling financially between providing for their children and their aging parents.

If you’ve missed the announcement, here are the highlights from the key sectors that may just affect you, and your pocket!