10 October 2014

Budget 2015: The People's Economy... What's in it for YOU ?

The much awaited Budget 2015 was presented by our Prime Minister at Cabinet today. Looking on are hopeful Malaysians with their never ended wish lists, which already submitted via various channels. Does your wishes being addressed in the budget?

The People's Economy...

This is the title for Budget 2015, which referring to an economy that based on the daily lives of the rakyat. Very obvious, this is to address the concerns of the rakyat towards the implementation of GST soon.

What's in it?
Here, we only highlighting a few key points which related closely with most Malaysians:

  1. Several infrastructure projects will be implemented:
    • Sungai Besi - Ulu Klang Expressway (SUKE)
    • West Coast Expressway from Taiping to Banting
    • Damansara - Shah Alam Highway (DASH)
    • Eastern Klang Valley Expressway (EKVE)
    • East Coast railway line along Gemas-Mentakab, Jerantut-Sungai Yu and Gua Musang-Tumpat
    • 2nd MRT Line from Selayang to Putrajaya
    • LRT 3 Project, linking Bandar Utama to Shah Alam and Klang

  2. On GST, an additional lists of items that will not be subjected to GST as follows:

  3. In addition, GST free for electricity consumption be increased from the first 200 units to 300 units.

  4. No GST for the purchase of RON95 petrol, diesel and LPG
  5. YA2015 for individuals and households:
    • Individual income tax rates will be reduced by 1% - 3%
    • Tax payers with family and income of RM4,000 monthly will not have tax liability
    • The current 26% individual income tax will be reduced to 24%, 24.5% and 25%

  6. Corporate Tax:
    • YA2015: Cooperative income tax rate will reduced by 1% - 2%. Secretarial fee and tax filing fee are allowed as deduction
    • YA2016: Corporate income tax rate will be reduced to 24%
    • YA2016: Income tax for SMEs will also be reduced to 19%

  7. PTPTN Loan:
    • 10% rebate given to borrowers who continuously make repayments for 12 months until 31 December 2015.
    • 20% discount to borrowers who make lump sum repayments from now until 31st March 2015.

  8. Youth Housing Scheme... What's the terms and conditions ?
    • Smart partnership between Government, Bank Simpanan Nasional, EPF and Cagamas
    • For married youth aged between 25 - 40 years
    • Household income not exceeding RM10,000
    • Maximum funding for 1st home is RM500,000
    • Maximum loan period is 35 years
    • Government will provide monthly financial assistance of RM200 for first 2 years
    • 50% stamp duty exemption on instrument of transfer agreements and loan agreements
    • 10% loan guarantee to enable borrowers to obtain full financing including cost of insurance
    • Only for 20,000 units offered on a 'first come first serve basis'

  9. Goodies for students:
    • Jan 2015, RM100 each be given to all primary and secondary school students
    • 1Malaysia Book Voucher of RM250 per student

  10. Expenses incurred for treatment of serious diseases are given tax relief up to RM6,000 per year (from RM5,000 currently). This is available to tax payer, the spouse and children.

  11. Increase tax relief for each disabled child from RM5,000 to RM6,000

  12. Home ownership:
    • PR1MA with 80,000 units to be build
    • Ceiling of household income is raised from RM8,000 to RM10,000
    • Rent-To-Own scheme will be introduced specifically for individuals who are unable to obtain bank financing
    • Extending the 50% stamp duty exemption until 31st December 2016
    • Increase the purchase limit from RM400,000 to RM500,000
    • Skim Rumah Pertamaku with ceiling price raised to RM500,000, and age of borrowers to qualify for the scheme increased to 40 years old
  13. BR1M will be continue:
    • RM950 for households with monthly income of RM3,000 and below. It will be disbursed in 3 installments in Jan (RM300), May (RM300) and Sept 2015 (RM350)
    • RM750 for households with monthly income between RM3,000 and RM4,000. It will be disbursed in 3 installments in Jan (RM200), May (RM200) and Sept 2015 (RM350)
    • RM350 for single individuals aged 21 and above with monthly income not exceeding RM2,000.

  14. Half-month bonus for civil servants with minimum payment of RM500 to be paid in Jan 2015. Meanwhile, Government pensioners will also receive special financial assistance of RM250.

1 comment:

  1. The benefits in Budget 2015 seems very attractive but the government is simply channelling part of the GST income back to the citizens. The PM also mentions that the price of some goods will decrease by 4.1% while some goods will increase in price with by at most 5.8%. Sounds good but we can't really take responsible merchant pricing for granted.



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