KUALA LUMPUR, Sept 22 (Bernama) -- The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) wants the government to increase the permanent remuneration for housing (ITP) for public servants in the Budget to be tabled in Parliament on Sept 28.

Secretary-general Lok Yim Pheng said this was necessary because the cost of housing, especially in the city, was very high.

"The problem is, only those who are financially well off are able to buy houses when there is a new housing project in the city area," she said in a statement here today.

She hoped the income tax division would not make large deductions from public servants.

For example, Lok said, when public servants recently received a 13 per cent pay hike of between RM600 and RM1,000, they were burdened with tax deduction.

Lok also urged that those earning less that RM100,000 a year be given a tax release through the coming Budget.