The big picture: To uplift the livelihood of low-income citizens, the Anwar Ibrahim’s administration has targeted the T20 households, which means the government will be spending lesser on this group.
The T20, explained: T20 basically means the top 20 per cent households based on their income. That means the T20 is the top 20 per cent highest income earning households.
The Perks That T20 No Longer Enjoy
Fuel: During the year 2022, the government spent RM50.8 billion on fuel subsidies. Of that amount, approximately 35 per cent, or RM17 billion, was used by the T20.
Electricity: Electricity subsidies for T20 households will also end next year, according to a speech in Parliament by Prime Minister Datuk Seri Anwar Ibrahim on May 22.
Haj aid: Anwar on March 18 said that the government would be bearing an additional RM1,000 in Haj subsidies for the B40, and that it would halt subsidies for the T20.
Tax: During the tabling of Budget 2023, on February 24, Anwar announced that the government would raise the income tax rate of those earning between RM100,000 and RM1 million between 0.5 to 2 percentage points — the higher the income bracket, the larger the increase. Additionally, Anwar announced that the government was working on imposing a tax on luxury goods.
The challenge: The huge disparity of classification in who belongs in the T20 category across the country is still debated.
- Depending on where you live, a household may be considered as T20 in one state but not necessarily in another.
- The classification is also an issue as it does not take into account costs of living, therefore it does not quite accurately portray the supposed wealth of those in the upper bracket.