National Budget 2023 live update

0

Tengku Zafrul (second right) holding a folder containing the Budget 2023. – Bernama photo

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz tabled the Budget 2023 in Parliament today.

This is the second budget tabled under the government led by Prime Minister Datuk Seri Ismail Sabri Yaakob and also the second since the 12th Malaysia Plan (12MP) was launched on Sept 27 last year.

Live Update:

– RM700 million for flood mitigation projects in 2023.

– RM1 billion under BNM Agrofood Financing Scheme for agrofood players to increase productivity.

– Government proposes to extend the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) incentive application period until Dec 31, 2025 to encourage green investment.

– Budget 2023 provides an allocation of RM95 billion for Development Expenditure, which is the largest provision.

– MRT3 Phase 1 is expected to be completed in 2028 while Phase 2 in 2030.

– RM25 million allocation to help cover rare diseases treatment cost.

– Cradle Fund will provide an allocation of RM50 million to help more start-ups innovate internationally.

– Import duty and sales tax exemption on nicotine replacement therapy products.

– Tax relief up to RM1,000 for dental treatment of self, spouse, children.

– RM4.9 billion to strengthen public health services.

– RM6.7 billion for seven ministries to implement TVET initiatives.

– RM25 mln in incentives in the form of discounts, vouchers, rebates to encourage domestic tourism.

– Monsoon Season Aid (BMT) of RM200 a month for rubber smallholders for four months.

– Reintroduction of aid for paddy farmers, RM200 a month for three months or a season.

– RM1.2 billion allocation for Persons with Disabilities.

– RM1 billion allocation for senior citizens welfare.

– RM305 mln allocation for Orang Asli including for social aid and uplifting living standard.

– Foundations under GLCs to sponsor at least 10 Orang Asli children to pursue studies overseas.

– My50 monthly pass to continue, benefits 180,000 commuters.

– Government to give a one-off grant of RM1,000 to all registered MSME companies and registered taxi drivers.

– Government proposes to give Elaun Modal Dipercepatkan and exempt 100 per cent income tax on capital expenditure to drive productivity, efficiency through automation.

Trader Mohd Rani Abdullah, 64, watching the live broadcast of the Budget 2023 tabling. – Bernama photo

– 15-20 pct discount for PTPTN loan repayments from Nov 1, 2022 to April 30, 2023.

– Government proposes to extend tax incentives for BioNexus joint ventures for applications received until the end of 2024.

– Petronas plans to contribute RM2 billion to Kumpulan Wang Amanah Negara in 2023.

– Monthly cost of living allowance for JPA scholars in the country raised by RM100.

– Government implementing the e-Invoice and Tax Identification Number (TIN) initiative in stages from 2023 to ensure a sustainable source of revenue.

– The deficit level for 2023 to 2025 is expected to continue to decrease to an average of 4.4 per cent of GDP.

– 2023 fiscal deficit is projected to decrease to 5.5 per cent of GDP compared to 5.8 per cent in 2022.

– Supplementary Food Plan (RMT) rate raised from RM2.50 to RM3 in Peninsula, from RM3 to RM4 in Sabah, Sarawak, Labuan.

– A total of RM200 million is provided for incentive, promotion and marketing to strengthen the recovery of the tourism sector.

– Government proposes to expand the scope of existing tax incentives for individual investors in start-up companies through equity crowdfunding.

– The government will provide the Malaysia Coinvestment Fund (MyCIF) of RM30 million in addition to the equity crowdfunding fund (ECF).

– “Bantuan Awal Persekolahan” aid extended to all pupils irrespective of parents income.

– The government will continue the Recovery and Support Through Equity Scheme or RESET and the Working Capital Scheme under Bank Pembangunan Malaysia with a total fund of RM1 billion.

– HRD Corp to provide RM750 mln to upskill over 800,000 workers.

– RM10 billion in loan funds will be made available through Bank Negara to encourage SME automation and digitisation activities as well as support the food security and tourism sector recovery agenda.

– MySTEP programme extended to Dec 2023; salary raised by RM100.

– SemarakNiaga 2023 is improved with a total value of RM45 billion, compared to RM40 billion announced for 2022.

– RM100 mln allocation to extend Keluarga Malaysia Cheap Sales programme.

– Govt to allocate over RM55 billion for subsidies, aid and incentives to alleviate cost of living.

– From 2023, taxable rate on first RM100,000 income of MSMEs reduced from 17 to 15 per cent.

– i-Saraan extended to 2023; matching contribution up from RM250 to RM300.

– Ceiling for EPF voluntarily contribution raised from RM60,000 to RM100,000 annually.

– 100 per cent exemption on the purchase of a house worth RM300,000 will save RM6,500.

– Govt to bear cost for B40 youth to obtain taxi, bus, e-hailing licenses under MyPSV programme.

Tengku Zafrul tabling the Budget 2023. – Bernama photo

– One-off RM500 cash aid for mothers from BKM households who give birth in 2023.

– BSN to prepare easy loan funds, help B40 invest in ASB.

– Total holding limit for ASB and ASB2 increased to RM300,000 compared to RM200,000 previously.

– Government will make SOCSO’s SKSPS contributions mandatory for all self-employed sectors in stages.

– Tax exemption for women returning to work for assessment years 2023-2028.

– EPF voluntary contribution limit will be increased to RM100,000 per year compared to RM60,000 previously.

– Tax cut from 21 pct to 19 pct for those in taxable income bracket RM70,000 to RM100,000.

– Tax cut from 13 pct to 11 pct for those in taxable income bracket RM50,000 to RM70,000.

– SC will introduce special training programme for women’s skill level to increase the number of women eligible for board of directors.

– RM250,000-RM400,000 tax income range together with the RM400,000-RM600,000 range will be subject to a 25 per cent tax rate.

– Tax savings up to RM1,000 for middle income group, RM250 for high income group.

– The government will continue to implement an expansive fiscal policy to ensure a responsive Budget 2023 agenda.

– Two percentage points cut on taxable income ranging from RM50,000 to RM100,000 for domiciled individuals.

– Resident individual income tax rate is reduced by 2 percentage points.

– Further improvement to Bantuan Keluarga Malaysia (BKM) aid.

– Budget 2023 allocates RM272.3 billion for management spending, RM95 billion for development, RM5 billion under the Covid-19 Fund and RM2 billion as contingency savings.

– The government may extend the statutory debt limit of 65 per cent of GDP in the medium term after the expiry of Act 830 on Dec 31, 2022.

– Fiscal deficit is expected to be consolidated at a gradual pace with the overall balance averaging at 4.4 per cent of GDP in the Medium-Term Fiscal Framework 2023-2025.

– This fiscal deficit is expected to reduce to 5.5 per cent of GDP in 2023 from 5.8 per cent in 2022.

– Federal government revenue is expected to decrease by 4.4 per cent in 2023 to RM272.57 billion from a growth of 22.0 per cent (RM285.22 billion) in 2022

– The top three recipients of Budget 2023 are the Ministry of Finance (RM67.2 billion), Ministry of Education (RM55.6 billion), and Ministry of Health (RM36.1 billion), constituting 43.3 per cent of total expenditure.

– Construction sector to grow by 4.7 per cent in 2023, manufacturing by 3.9 per cent, agriculture by 2.3 per cent and mining by 1.1 per cent.

– Bernama