The Key Points
- payment through deductions between 2-15% of borrower’s salary
- applicable to borrower’s earning more than RM 1,000.
- Tax break for companies that assist staff to settle their loans
- Tax break for National Education saving scheme increased to RM8,000.
- Borrowers aged above 60 and earning less than RM4,000 a month have been waived.
In order to ensure the sustainability of the National Higher Education Fund (PTPTN), the government has announced several initiatives in Budget 2019.
Finance Minister Lim Guan Eng said these include the option of payment through deductions of between 2% and 15% from the borrower’s salary, based on their monthly income rate.
This system will only be applicable to borrowers earning more than RM1,000 a month.
Additionally, a tax break will be given to companies that assist its staff to settle their loans by the year ending 2019, Lim said.
Individual income tax breaks for the National Education Saving Scheme will also be increased from RM6,000 to RM8,000.
Finally, the government has also announced that all remaining loans for borrowers aged above 60 and earning less than RM4,000 a month have been waived, benefiting 350 borrowers with a cost of RM4.2 million.
Source: The STAR Online
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