BACHOK: The RM500 one-off payment for households with a monthly income of up to RM3,000 is tax-exempt, Deputy Finance Minister Datuk Dr Awang Adek Hussin said on Saturday.
He said civil servants earning almost RM3,000 a month and eligible for the aid should not be unduly concerned about having to pay income tax on the additional payment.
"The government desires to help people faced with a rising cost of living," he told reporters after a police-community event in Jelawat here.
More than 240 people from the Chinese and Siamese communities attended the event, organised by the police to foster closer relations with the people to curb crime.
Awang Adek was asked to comment on claims by opposition parties that civil servants with a RM3,000 income eligible for BR1M would have to pay income tax for the aid.
The Kelantan Umno Liaison Committee deputy chairman said the allegations were made out of fear that the aid is getting good response from the people.
"They also fear that support for the government is growing," he added.
There have been requests for the aid to be made an annual payment, he said, adding that he was confident Prime Minister Datuk Seri Najib Tun Razak would consider the matter should the Barisan Nasional be given the mandate in the next general election. - Bernama