Send in your reactions to Najib’s Budget 2014. The (regressive?) Goods and Services Tax at 6 per cent will come into force on 1 April 2015, replacing the Sales and Services Tax. That’s a higher rate compared to the 3-4 per cent predicted earlier. Making up for all the massive pre-election spending and cash handouts?
Those earning below RM4000/month will be exempt from income tax. But how will this affect the lower-income group who presently do not pay income tax – and are already burdened by the inflation rate, which has reached the highest level in 20 months? And now the 34 sen sugar subsidy will be abolished from tomorrow. Will the RM650 BR1M3.0 (RM450 for households earning RM3000-4000/monthly) compensate for that?
While GST will be imposed, corporate tax is once again cut by a further 1 per cent; the burden of taxation is gradually being shifted away from the corporate sector.
In a positive move, Real Property Gains Tax has been raised to 30 per cent for disposals within three years, and 20 per cent and 15 per cent respectively for disposals in the fourth and fifth year. Maybe that is not enough. Perhaps it should have been a flat 30 per cent for disposals within five years to cool property speculation.
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If they are illegal, then the contract is illegal, and the debt holder is not responsible to pay?
I have heard these loan sharks have lawyers who prepare valid legal documents that will hold up in any court of law in Malaysia.
Loan sharks do not bring any benefit to the development of this country. In fact they are as dangerous as drug trafficking.
Pirated DVDs are illegal, but you can get them easily at any shopping mall.
Same logic here… only in Bolehland.
Tumpang discuss another topic. Because really “frust” about this perennial issue – loan sharks in Malaysia. Read another case in the papers today. About this lady (and son) in Penang left to face the debtors by her useless husband. And of course the MCA comes to her aid. I have been hearing this problem for as long as I can remember. Why can’t the government and bank negara ban “loan sharking”? Or at least control the amount of interest they can charge or protect the family members associated to the debt holder, Is it REALLY that hard? Instead the government… Read more »
Loan shark is an illegal entity but the police is not enforcing.
Do not be surprised if the loan shark (ah long) activities are helmed by rich & famous Datuks, so police also cose one eye?
” The Mansion in Kelawai comes in 500 sq ft. You guess how much ???? 600k +++++”
Yang, I stand corrected. The tiles tinted with gold is it?
This could be targeting outsiders not familiar with Penang.
You definitely get better value than that.
Today front page headline news in most Chinese newspapers reported that food price will likely go up 5-10% from next year (due to higher cost in sugar, cooking gas, transportation…). Food operator will hold on to current price (likely with smaller portion?) until the end of the year for fear of losing customers. However, Chinese new year cookies will definitely go up in price for the Year of the Horse! I doubt BN is really prihatin towards health (diabetes risk) and sex lives of rakyat with the PM and DPM’s excuse (alasan) of removal of sugar subsidy. Sugar is now… Read more »
DSAI today confirmed that up to RM1 billion in profit for politically-connected companies, such as Syed Mokhtar’s Central Sugar Refinery after the removal of sugar subsidy.
Cronies will now senyum manis!
Finally (sorry for lapse in train of thought), I believe the harsh reality will finally arrive – there are too many high end condos in Penang with too few genuine home-owner-want-to-be. And affordability is also another issue. I think we will see a correction soon. And I predict developers will start offering “affordable” condos soon – little shoe boxes in the sky, say 600 sq. feet for lower prices.
Also , I forgot to add. Foreigners are coming here to purchase because our RPGT is lower compared to other countries or their home countries. Also, our properties are cheaper, so raising the minimum purchase price will make the entry cost more expensive. This will deter some foreign buyers (not all).
The same RM3 million condo in Penang is selling in Singapore for S5 million (about RM12.5 millions) and they buy the Malaysian condo for RM3 million (S1.2 millions). Soo cheap for the S`porean. No wonder they are snapping up properties in Penang where many landed heritage sites are being snapped up. And many developers are marketing their condo overseas. One whole block in Tg Bungah was snapped up by the Arabs. Local can forget about buying houses now.
Tigerz, Yes the developers are building 500 – 600 sq ft condo but they are not affordable. It is in the range of 500 k onwards. Do you call that affordable. The Mansion in Kelawai comes in 500 sq ft. You guess how much ???? 600k +++++
Yang, not exactly. The old rate still applies, not “no rpgt”.
Tigerz, Sorry, Yes the old rates still apply
Anil, Yes exactly. You are very very right, just like I said before.
Phylis, If S & P has already been signed before the budget announcement there will be no RGPT but if the S & P signed after the budget, you will be liable to the 30% tax.
I notice there is no GST exemption for medicines/medications and medical supplies.
The boss of mamak stall in JB that I had breakfast this morning told me that mamak stall council will have meeting soon to increase food and beverage price in view of higher operation cost and cut in sugar subsidy.
Basically only 20% of the budget is allocated for development. Allocation to Education has been reduced. 80% of budget are for government operating expenditure eg. to pay for the salary of the bloated civil service, and likely to be wasted and leaked as before.
I think the best way to reduce deficit is to cut down the unnecessary headcount in the dead wood of civil service. But Najib will never do this to his fixed deposit that account for his 49% support.
Read more here:
http://www.freemalaysiatoday.com/category/opinion/2013/10/25/najib-wants-more-money-for-shopping/
Theoretically the GST will help catch people operating in the black economy. But its a bit hard to take with the hypocrisy of the govt. with mammoth financial mismanagement (with minimal accountability) of the taxes they have been collecting. PKFZ, NFC, luxury condos for the MACC, pay rises to public servants to reward them for voting BN, it goes on and on. And god knows how much public resources were used for BN’s election campaign. If they had 10% of the enthusiasm put into managing PROPERLY what they have, we would perhaps not have to burden the lower income bracket.… Read more »
What the point of increasing the tax free threshold when the prices of goods & services will escalate starting an immediate 6% from day one. The only people who are going to be hit hard will be the lower & middle income especially the pak ciks & mak ciks, thanks to your support for this minority government.
Just wondered how Pasar Malam Traders charge on GST and Govt duly collected what we have paid?
Why I still pay for sky high vehicle prices, where I would rather charge with consumption tax? Why didnt the Govt find ways and means to prevent leakage instead of passing the buck to the masses? By the way, are you sure the govt make good on the numbers of affordable housing ? Did they live up to the commitment that was pledged to Penang folks during GE13?
Phyliss, esp in hotels, the workers are given points. The 10% service is distributed among the employees based on performances. I also know that the employers of good restaurants do distribute the service charge to the workers
GST is good in the sense that it will widen the tax base. It’s also a consumption based tax , meaning the more you consume (goods or services) the more tax you kena. In regards to petrol, I believe essential goods are exempt from GST, is it not? The problem with Malaysia at them moment is, the percentage of tax payers (income tax ) is low. GST will cast a wider net, covering the business owners, petty traders, casual workers, and black market income earners. With the GST, income tax, and corporate tax can be lowered. Theorarically, it will benefit… Read more »
I forgot to mention that the 10% service charge in restaurants is not a Govt charge. In other countries tips are given, here the Govt allowed the flat 10% in lieu of tips, and the 10% is distributed among all the workers
I doubt the 10% service charge in restaurant is distributed to workers, knowing that they are likely exploited by the owners. Anyway, most of the restaurant service is merely bringing the food to you and do not deserve the 10% charge. It should be abolished as I rather hand the tip myself to the waiter/waitress who serves me well with a good smile. This is to best way to reward good performer and to improve service standard. Otherwise, the towkay or owner will pocket the 10%. This weekend we all should check if F&B price is increased in response to… Read more »
Yes, please report back if you notice any inflationary spiral.
RM 100 Million rducation fund to imprve and provide training for Indians . How nice of Najib.
If BN can increase the intake for UiTM from 180,000 to 250,000, why can’t they increase the place in local Universities and scholarships for Chinese and Indian accordingly?
Allocation to national-type Chinese school in the new budget is halfed to RM50 million compared to the previous budget. Ajib’s response (punishment?) to ‘Chinese Tsunami’?
RM50 million was allocated for the Indian Entrepreneurs Development Scheme.
Anil Netto can apply to be a entrepreneur?
Haha, I don’t think I am cut out for business.
Hi Phyliss, the current 6% sales tax will be abolished and replaced with a wider Goods and Services Tax. That means petrol prices will go up by 6% when GST kicks in. Restaurants will still remain 6+10. Nothing was said about fruits bought in hypermarts and from Lorong Kulit oe markets. Will this mean, Tesco and Giant will charge 6% for fruits and vegetables, but not in markets?
Good move to slam high RPGT as this will really stop the speculators. All the Banglas, Myanmarese and Indons who are paid to wait in line to zap up all the units offered before a release. Also the RM1m for foreigners will be a different niche market, and not of the middle income group.
LGE’s MUD (management Under Developers) will be very upset, and wonder if they will get some help from PR to reduce their “burden”. Maybe can take more free land from the sea.
The property gains tax would be doubled to 30% for real estate sold within 3 years.
Is this applicable to properties bought before the budget announcement?
If so, many speculators (Yang?) will be cursing their luck and Najib as well.
The minimum value of a property for foreign buyers was doubled to one million ringgit.
Will this encourage developers to build more million-dollar condos to cater for the foreigners?
I bet this will happen in JB/Iskandar region.
Yes, I think the developers will merely raise their condo prices and market them to foreigners and that will push up the rest of the property prices. I believe this is what was happening in Penang.
The new property gain tax will kick in next year.
The Country Garden condo project at Danga Bay, JB is targeting Singapore and China buyers, as it uses Singapore MediaCorp artists and China movie Star Tang Wei to market the project. The condo is highly priced from RM750 psf. I think developers are already targeting foreigners by pricing high their projects.
http://www.themalaysianinsider.com/business/article/country-garden-danga-bay-condos-selling-fast-bernama
As a middle income family, I fully support GST. My friends and relatives who are petty to not so petty Pasar malam and market traders, earn much more than me. However they pay zero taxes, all disguised as the so called poor. Drive big cars but all black money. So let them also pay taxes. Anyway, the basic necessities are have a 0% GST. Cukup la complain-complain-complain. I am also fed up of Singaporeans and Thai nationals coming here and stealing our subsidies by buying all our subsidized stuff and taking back. Enough of subsidy mentality.
GST in principle is OK with me, but can never trust how BN is going to implement properly with transparency.
Agreed that many so call ‘petty traders’ never pay tax but can drive Mercedes, with air-cond in every room of their home.
I only drink Kopi-O kurang manis, not sure if the mamak stall will also follow suit with barang naik in its pricing?
With GST implemented, does that mean that we only pay 6% at restaurant, and not the current 6% government tax plus the 10% service tax from the operator?
You wish. Knowing how these things work .. do you really think prices will come down by much if at all?
What I mean is “Prinsip BN tak boleh dipercayai”.
Anything good on paper will be abused during implementation, as AG’s report has demonstrated to us.
How do you expect enforcement is strong enough to deter profiteering?
ps: Tun Ling is very happy as GST has diverted attention away from his acquittal. PKFZ followed the same script of Perwaja case.
Eric Chia died of heart attack a year after he was acquitted of the Perwaja scandal.
Karma at work? Or is his heart could not contain the guilty conscience?
Ling better pray hard that his script has the same conclusion.
hahahahah sugar subsidy of 34c abolished tomorrow. tunglang so expect your kopi o kau kau to be increased. Well it may not be that kau kau anymore. The spiral effect will soon start………
yang,
Tung lang got to sing this song in order to ensure that kopi is sweet
Today Najib announced 6% GST while Ling Liong Sik was cleared of PKFZ charges.
Wastage and leakage of public fund are never accounted for, while rakyat will have to pay more tax to reduce deficit brought by BN.
hahahah now you all have been taken for a ride by the … Cheap. Even worse not 4% but 6%. Well don`t blame anybody except for the stupidity of 2Brim. Can these 2 Brim cover up your suffering now. Worse still RGPT will be up and the property market will spin down. Who will suffer. The agents, the bank, the people who will be worse of looking for a decent place to live. And who will reap the benefits. Its the developers. Now you cannot sell and its only left to them to monopolize and sell and sell higher. Just… Read more »
Najib was ridiculing poor kampong folks when he said in jest that belacan is not subjected to GST?
Really lacking in EQ when poor rakyat is suffering.
I look at the front page of today’s (Sat) Utusan and BH and I hardly noticed the mention of 6% GST. However, both the Umno’s mouthpiece highlighted in bold the ‘goodies’ from BN government e.g. RM650 BR1M. Looks like they are playing down the GST implementation?