We broke down Budget 2023’s incentives into B40, M40 and T20 categories

Hey hey, people. We know y’all like it when things are easy. You don’t want to read through all 102 pages of the Budget 2023 speech Daddy Zafrul made last week.

Lucky for you, this writer is paid to do stuff like this day in and day out, and he broke down Budget 2023’s incentives into B40, M40 and T20 categories so y’all can check out what’s relevant to you.

Before we begin tho, here’s a TL;DR on how the different income groups are classified according to the Department of Statistics Malaysia:

• B40: Household income of RM4,849 or less per month
• M40: Household income between RM4,850 and RM10,959 per month
• T20: Household income of RM10,960 or more per month

Aight, let’s not waste any time.

 

B40 folk are getting more incentives

Generally speaking, Budget 2023 seems like an upgrade on its previous iteration, with more individuals and families being eligible for handouts and incentives from the government.

• Electric bill subsidies of up to RM40 per month for families with monthly incomes less than RM1,169
• Families with monthly incomes less than RM2,500 with five or more kids are eligible for an RM2,500 cash handout
• Families with monthly incomes less than RM2,500 with up to five kids can get between RM1,000 to RM2,000
• Families making between RM2,500 and RM5,000 per month can get RM500 to RM1,250, depending on the number of kids
• For single people and senior citizens without partners, they can get RM350 and RM600, depending on income levels
• Single parents with kid(s) can get an extra RM500 on top of the cash handout mentioned earlier, up to a max amount of RM3,000

 

M40 peeps are getting some income tax cuts

Given how individuals and households in this income bracket are probably financially comfortable (at least to a certain extent), it’s mostly income tax cuts for y’all.

• Those earning between RM50K and RM70K a year will only have to pay 11% annual income tax
• Those earning between RM70K and 100K a year will be paying 19% annual income tax
• Eligible peeps will receive RM100 on selected e-wallet platforms. Who exactly are eligible hasn’t yet been disclosed, but apparently, an estimated 8 million people will benefit from this

 

T20 chads are getting… an increase in income tax

Technically, for some of y’all T20 folk, this is gonna sting a tiny smidge cuz you’ll pay more in income tax, but hey, at least y’all can afford insurance, right?

• Those earning between RM250K and RM400K a year will have their income tax bracket combined with the RM400K to RM650K earners, so they’ll have to pay 25% annual income tax. Previously, the RM250K to RM400K income bracket had to pay 24.5% annual income tax, so yes, it’s a 0.5% increase.

 

Budget 2023 might still be subject to change

Yeah, since the Parliament’s just been dissolved and General Elections has been announced, there might be changes to the Budget once the new government settles in, but that’s pretty much it.

Of course, there’s more stuff in the Budget we didn’t mention, like subsidies and aid for women and the youth, but what we covered here should affect almost everyone at every income level. If y’all are curious as to what else is in there, check this link out, and if we missed anything, just stick ’em in the comments.