How tax reliefs subsidise the rich


Come Budget Day, many taxpayers will be hoping for more tax reliefs on all sorts of expenditure. But do you know such tax reliefs actually favour the rich?

Not only that, they tend to benefit powerful business lobby groups such as private hospitals and insurance companies.

Economist Subramaniam Pillay explains in more detail in an article on the Aliran website ahead of Budget Day.

With policies like these, it it any wonder then that the rich are getting richer?

Please help to support this blog if you can.

Read the commenting guidlelines for this blog.
Notify of

Most Voted
Newest Oldest
Inline Feedbacks
View all comments

Don`t be misled.
Take the cash and and then vote PR

Andrew I

And don’t forget to say thank you.


The rich and famous want to maximize tax avoidance (the arrangement of one’s financial affairs to minimize tax liability within the law). See how many BMWs, Merzs and Porches on the roads. The Barang Naiki Clan wants to splurge Ah Kong’s monies on heady Satu Lagi Projeks, otherwise no on-going kang tau. That leaves little for rejuvenating the middle class, rebates or subsidies or tax relief. My advice to middle class folks: Strike out on your own. Just as creative visionary Steve Jobs once advised in Stanford University: “Your time is limited, so don’t waste it living someone else’s life.… Read more »

Super Senior

BN flers have misinterpreted Steve Job’s wisdom of ‘Stay Hungry, Stay Foolish’ to continue to be ‘sentiasa lapar dan buat bodoh’ when comes to plundering the wealth of the nation via corrupted practices.


Have they Barang Naiki minions been hungry before?

Do they know what it’s like to skip lunch to save for dinner or half dinner? Do they experience eating RM1 Char Bee Hoon for breakfast and lunch for months?
I had been thro’ that while writing for Penang Street Hawker Food.
Real hunger can bring the most needed thoughts/ideas/inspiration to mind.

Steven Tan

The analysis written is a little too socialist as the author does not take into account how these tax rebates benefit the middle class. We have past the era of a class warfare between the rich and the poor. Everybody in this nation is provided with education and medical care. Everybody has a chance to be successful though some have more advantages than others. This is the era of the haves and the have nots. I’m afraid that the author is still stuck into the past. The author talks about books and medical rebates; do you not agree that this… Read more »


GST is the word. Don`t say that you have not been warned.
Continue with Najib & UMNO you will continue to suffer.


Yes, please vote MIC/MCA to support another BLING…BLING… BLING… big sparkling DIAMOND, etc etc etc etc etc … and the poor RAKYAT continue to suffer…………….


Give you RM500/= and he add GST 4% .
The average you spend per month = 3000.00 x 4% which make it 120.00 per month and x 12 months that will make 1,440 per year x 5 years = 7,200.00 Barang Naik. That is for the average family.
And your cry will be too late. Get this Najib out before you bleed

Syiok Syiok

If tomorrow budget does not bring goodies to Malaysians, at least the less rich Penangites can be happy with the latest annoucement by YB LGE (Anil kindly provide more details if you do access to them) : PDC to launch 200 acres Bandar Cassia township project in Batu Kawan involving 600 apartments. Each unit minimum 800 square feet with price range from RM75K to RM220K. Total 7300 units expected to be ready in 5-7 years. Facilities sports centre, library, pasar, football field, swimming pool, jogging & bicycling track & environmental friendly park in the vicinity. For more info refer to… Read more »


I guess I have been over critical of LGE before. Now he has indeed a masterplan to build housing estate for the not so rich ones.
Keep up the excellence, the rocket of penang !

Syiok Syiok

Dedicated to the richies wanna-be :-

Syiok Syiok

Taxman even sucked the fortunes of the Beatles, go and ask Ringo & paul (surviving Beatles). Counter barang naik with more sinful tax ???


That the rich gets more tax relief is commonsense. This is because they, in the first case, pay more taxes.

The government can raise the bar and tax them more, like those in more socialist countries such as Australia or UK.
That will encourage them to migrate their income because many taxpayers feel that the taxes paid do not commensurate with available support services and return from the public sector.
The net effect is that tax collection will reduce further, instead of increasing when the bar is raised.

Simple Simon

BN’s loss in income from tax relief will be offset by BN’s GST. Currently less than 9% of the working people are contributing to income tax. With the implementation of GST, now everyone will pay tax each time they consume, regardless of how old they are. Pensioners will be the first to suffer as their purchasing power will be diminished. Each time you buy something, you have to factor in additional 6%. I think hawkers will pass on the burden of GST (from their purchase of raw materials) to the customers. Now that’s really a TRANSFORMASI. Jibby the Hutt will… Read more »

Andrew I

And Caligula Chua Ceasar will be known as Bapa SMD.


Hawkers have no reason to pass their GST to their customers because the government has already announced that GST will not be applied to food.