Almost all my colleagues posed me that question last Friday and I am sure that was the first thing that came to mind for most of you as soon as you mentioned about the National Budget 2009 tabled in parliament last Friday.
The answer is yes… terms and conditions apply.
First, if you are rich, you get to taste a little bit of sweets as the highest rate for individual income tax reduced from 28% to 27%. For you to enjoy this, you should be earning about RM280,000 and above in a year. Are you one of them?
There is also a drop of marginal tax rate of 13% to 12%. This is for those who earns between RM35,000 to RM50,000 a year. If you’re lucky to fall within the RM35,000 chargeable income, you get an additional RM50 rebate. This RM50 together with the 1% decrease should give you additional money of circa RM500 a year to spend. Are you one of them?
Frankly speaking, those are the 2 prominent goodies for individuals. So unless you’re earning above RM280,000 a year or between RM35,000 and RM50,000 a year, there isn’t much. The rest are just
Of course, a lot of us are pretty excited about tens of billions of ringgit allocated to improve the public transport system. That’s a lot of money allocated… but won’t you wonder how much will actually… I mean actually be used… as in actually… aiyah, you know what I mean.
Now, allow me to just divert your attention to goodies given to companies. I know… I know… they don’t concern you but just read for information sake… can or not?
There are a lot of goodies given to bus companies. Toll reduction… road tax reduction… not bad really. But I wonder, who is the owner of bus operators in town?
Let me ask you a question… if you want to encourage tourists to buy nasi lemak, do you exempt the nasi lemak seller from paying tax or exempt the tourists from paying tax (say service tax)? In a move to apparently encourage foreign companies to list in Bursa, the company that provides advisory services to the foreigner will get tax exemption. It didn’t really make sense to me until one of my friend asked me… “who owns one of the biggest corporate advisory firm in town?” I dunno lah… which one ah?
There is one I like best, and I am sure most if not all of you are also drooling over the proposal. I am talking about the 100% exemption on import duty and 50% exemption on excise duty on hybrid cars. Will take make the Honda Civic Hybrid sells like hot bread? I am definitely going to get one. But then I am also wondering, who will be getting the AP for it… hmmm….
Last but not least, do you know how much money will be spent to develop Sabah and Sarawak? Billions and billions ringgit! Makes me wonder why…