Economic recovery must include M40

SHAH ALAM - Parti Amanah Negara (Amanah) leadership is of the view that the nation's economic recovery should take into account an economic system that also cares for the M40 group.

Its Consumer Bureau Chairman Faiz Fadzil said whenever ideas of subsidies or large aids are discussed in the media, the M40 group are often overlooked, eventhough this group is also affected by tax burdens.

They also do receive any cash aid like the B40 group.

Faiz said M40 is categorised as homes receiving an income of RM4,850 to RM10,959 a month and a family with the income of RM4,850 in Kuala Lumpur is considered as part of the M40 group which is the same for families in Kota Bharu.

"The reality is that the cost of living puts more pressure on families in big cities like Kuala Lumpur, not to mention if they have several dependents.

"The M40 has the pressure of the taxation system where many economists have stated that the taxation rate in Malaysia was unfair for a large portion of M40 individuals.

"Another category was suggested to be introduced which was the lower M40, this is expected to cover 50 per cent of M40 households and this group should receive the same benefits as the B40 category which includes the subsidy for oil and cost of living aids," he said in a statement to Sinar on Wednesday.

He said government aids should be based on the dependents and the location of a household's residence to take into account the local inflation factor.

A family in Kuala Lumpur should be entitled to a higher cash aid and at the same time Malaysia's income tax system should be restructured to prevent the M40 from being taxed excessively.

"Under the administration of the unity government led by Datuk Seri Anwar Ibrahim I believe the country's economic policies will be reformed to become fair and caring as this is important for us to restore the economy and ease the burden of the high cost of living," he said.