Rafizi: T15 Income Group Classification to Aid Distribution
Government to Decide on T15 Classification Soon
Kuala Lumpur: Proposals related to the definition and classification of the "T15" income group are being refined and will be decided by the Cabinet soon, according to Economy Minister Rafizi Ramli. The classification agreed upon by the government will be used for the provision of government aid and subsidies.
Net Disposable Income Method to Ensure Fair Aid Distribution
The proposed classification of T15 from the economy ministry is to move from the approach based on gross income that was previously used, namely B40, M40, and T20, to the net disposable income method. This new approach aims to ensure a more inclusive, fair, and targeted distribution of aid.
T15 Group Classification to be Based on Net Disposable Income
Rafizi explained that the classification of the T15 group based on net disposable income can be prepared using information in the Padu system by taking into account one’s "reasonable basic living expenses." This approach will provide a more accurate representation of an individual’s financial situation, enabling the government to provide targeted aid and subsidies.
Fuel, Education, and Health Subsidies to be Targeted under 2025 Budget
Rafizi was responding to Senator Baharuddin Ahmad’s question regarding the T15 group, particularly with fuel, education, and health subsidies to be targeted under the 2025 budget. Rafizi emphasized that the T15 classification will be crucial in ensuring that these subsidies reach those who need them most.
Conclusion
The classification of the T15 income group is an important step towards ensuring a more equitable distribution of government aid and subsidies. The new approach, based on net disposable income, will provide a more accurate representation of an individual’s financial situation, enabling the government to provide targeted support.
FAQs
Q: What is the T15 income group?
A: The T15 income group refers to a classification of individuals based on their net disposable income.
Q: Why is the government moving from the gross income approach to the net disposable income method?
A: The new approach aims to ensure a more inclusive, fair, and targeted distribution of aid.
Q: How will the T15 group be classified?
A: The classification of the T15 group will be based on net disposable income, using information in the Padu system, taking into account one’s "reasonable basic living expenses."