GST to offset BR1M at the expense of the people

PETALING JAYA - Malaysian Trades Union Congress (MTUC) president Mohd Khalid Atan said the people, especially those who are from middle and lower income groups, will not benefit from the new BR1M scale introduced by Prime Minister Datuk Seri Najib Abdul Razak.

Najib, while tabling Budget 2015 today, said the BR1M scale will be increased after taking into consideration the increased revenue collection from GST and the "affordability of the government".

The BR1M payment will be increased from RM650 to RM950 for households with a monthly income of RM3,000 and below.

"It will be disbursed in three installments of RM300 each to be paid in January and May with the balance of RM350 from September 2015," said Najib.

Households with a monthly income between RM3,000 and RM4,000 will get RM750 from the previous RM450.

BR1M will be disbursed in three installments, that is, RM200 to be paid in January and May while the balance of RM350 from September 2015.

Single individuals aged 21 and above and with a monthly income not exceeding RM2,000 will see their BR1M payment increasing from RM300 to RM350 a year.

However, Khalid suggested the implementation of the Goods and Services Tax (GST) next year will hit the people due to the spiraling cost of goods and services each year.

"The close to RM1,000 people get from BR1M is only enough for the new tax scheme," Khalid said.

Khalid suggested that Putrajaya should introduce a cost of living allowance (COLA) for the people, instead of just giving the once a year financial aid.

"After all, the government seems to have introduced a COLA system for fishermen," he said.

Najib announced a RM200 monthly aid which will benefit some 44, 000 fishermen. -Sundaily.