Some of the more immediate benefits that the lower income group will be able to enjoy a higher tax rebate at RM400 instead of the current RM350 (this is for people with taxable income of RM35,000 and below). Also, there is an additional 50% stamp duty exemption given to loan agreements for the purchase of medium cost houses that cost up to RM250,000. Households with monthly electricity bills of RM20 or less will also not have to pay for electricity starting October 1 this year. So far, so good.
As for the higher income group, there is a reduction in income tax rate from the highest marginal tax rate of 28% to 27%. You may think that 1% is a small number, but bear in mind that a 1% savings on a large amount is quite sizeable. In addition, there is also an exemption of tax on interests earned from savings. If I am not wrong, taxable income from interests apply only to a sizeable deposit for a period of 12 months and above. This means that the rich can now save more since their interests earned are tax free.
So what do people of middle income get? Well there is a reduction in the marginal income tax rate from 13% to 12%, and this should serve the middle income earners. But I argue on the point that 1% of RM100 is very much less in savings compared to 1% of RM1,000. Don’t you agree? If the rich can get a 1% savings, why can’t the middle income group get a 2% reduction?
Having said that, I read and re-read the 2009 Budget to be thorough how else I can stand to benefit. Here are some of my little ‘blessings’:
1. Staff benefits like interest subsidies on housing, motor vehicles and education loans will be tax exempted up to a total of RM300,000 in loans.
2. Childcare allowance of up to RM2,400 a year will also be tax exempted.
3. Employers providing maternity benefits will also see a tax exemption and I hope this will serve to encourage companies to provide more maternity benefits.
4. Traditional mecidine that includes acupuncture and even ayurvedic will also be tax exempt.
Well that is about as much as I can benefit from the 2009 Budget. What about you? Have you read between the lines and found some goodies in store for you?
