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.