Budget 2025 Not a "Robin Hood Budget"
KUALA LUMPUR: The introduction of a 2% tax on dividend income above RM100,000 received by individual shareholders and the targeted subsidy of RON95 petrol for the top group of T15 is not a reason to describe the Budget 2025 as a ‘Robin Hood Budget’. According to Lim Guan Eng (PH-Bagan), this notion is misguided and misrepresents the government’s efforts to address inequality and reduce the disparity.
Key Objectives of the Budget
Lim emphasized that the government is not simply imposing a penalty tax on the rich but rather asking the fortunate to help the weak and poor. This aspiration of the Unity Government includes all people regardless of race, religion, and background. He stressed that the country cannot succeed and progress without mobilising all the energy and contributions of the people, not just the B40 and M40 groups but also the T20 group.
Defining the T15 Group
Lim highlighted that the monthly income limit for T15 households for the subsidy should reflect the living wage, set inclusively in the range of RM15,000 per month. He also argued that the T15 group should not be labelled as ‘uber’ wealthy because they contribute to the economy through corporate social responsibility and tax payments.
Petrol Subsidy for T15 Group
During the debate on the Supply Bill 2025, Prime Minister Datuk Seri Anwar Ibrahim announced the government’s plan to implement the RON95 subsidy target in the middle of next year, with the T15 category not enjoying the subsidy. However, some MPs have questioned this move, particularly in light of the definition of the T15 group.
Defining the T15 Group: Fairness and Inequality
Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) urged the government to immediately announce the true definition of the T15 group to put an end to the concerns of some people who want to know if they belong to the group. He pointed out that based on the 2022 survey of household income data (HIS) by the Department of Statistics Malaysia (DOSM), the top 15% of incomes in Malaysia started with RM13,295 and above. This, he argued, is unfair for those who only have a household income of RM13,000.
War on Sugar
Meanwhile, the issue of ‘war on sugar’ also received attention during the debate. Several MPs expressed support for the government’s move to increase the excise duty rate for sugary drinks in phases by 40 sen per litre starting Jan 1, next year. Some MPs suggested that the government consider removing sugar from the Price Control and Anti-Profiteering Act in the future, which would help the government save RM500 million a year. This, they argued, could be used for national health expenditure in order to change the lifestyle of the people and reduce the burden on health facilities.
Conclusion
In conclusion, the Budget 2025 is not a ‘Robin Hood Budget’ but rather a serious attempt to address inequality and reduce the disparity. The government’s efforts to promote a more inclusive and progressive economy will benefit all Malaysians, regardless of their social status or income level.
FAQs
Q: What is the definition of the T15 group?
A: The definition of the T15 group is not yet clear, but it is assumed to refer to the top 15% of households in Malaysia.
Q: Why is the T15 group not getting the RON95 petrol subsidy?
A: The government has announced that the T15 group will not be eligible for the RON95 petrol subsidy in the implementation of the budget’s targeted subsidy.
Q: What is the purpose of the ‘war on sugar’ efforts?
A: The ‘war on sugar’ is an effort to reduce the consumption of sugary drinks and promote a healthier lifestyle, as excessive sugar consumption can lead to serious health issues.