Budget 2010 Highlights
Our prime minister Datuk Seri Najib Tun Razak had just announced the annual budget for the forthcoming fiscal year. This is the first time I paid much attention for the budget which I afraid the budget might influence my financial planning too, such as the reduce maximum individual income tax rate from 27% to 26%, personal relief increase from RM8,000 to RM9,000 in 2010.
Here is the highlight of the Budget 2010.
- Converting the National Higher Education Fund Corporation (PTPTN) loans to scholarships for students who graduate with first class honours degrees or equivalent beginning 2010
- Government to allocate RM899m for tourism industry in 2010, attract more participants from UK, Japan, Korea under Malaysia, My Second Home.
- Government reduce maximum individual income tax rate from 27% to 26%, personal relief increase from RM8,000 to RM9,000 in 2010.
- Speed up implementation of high speed broadband at total cost of RM11.3b,of which RM2.4 billion is from government and RM8.9 billion from Telekom Malaysia.
- Individual taxpayers will be given tax relief on broadband subscription fee up to RM500 a year from 2010 to 2012.
- Government allocate RM9b for infrastructure, of which RM4.7b for road, bridge, water, sewerage projects and RM900m for rail.
- Micro insurance and Takaful coverage for small-scale businessmen which will benefit from coverage ranging from RM10,000 to RM20,000 with premium as low as RM20 per month.
- About 50,000 hardcore poor households registered with eKasih and 4,000 Orang Asli households will be given assistance to achieve the target of zero hardcore poverty in 2010. An allocation of RM41 million will be provided to improve the income and quality of life of the Orang Asli community.
- Allow 100% foreign equity stake in corporate finance, financial, planning companies from at least 30% local stake now.
- For upstream petroleum companies, income tax for yr assessment 2010 based on 2009 income can be paid over 5 years.
- 5% tax imposed on gains from disposal of real property from Jan 1, 2010. However,it will be retained for gifts between parent and child, husband and wife, grandparent and grandchild. This tax exemption will also be given on disposal of residential property once in a lifetime.
- Imposing RM50 service tax on each principal credit card and charge card, including those issued free of charge, and a service tax of RM25 a year on each supplementary card effective Jan 1, 2010.
- Government to impose RM10,000 for each approved permit to open AP holders, for distribution of AP in 2010.
- Government ensure targeted groups will benefit from oil subsidy by implementing fuel subsidy management system in early 2010, using MyKad.
- EPF to launch a scheme that enables contributors to utilise current and future savings in Account 2 to enable them to obtain higher financing to buy higher value or additional houses.
- Government to issue 1Malaysia sukuk totaling RM3b, for Malaysian aged 21 and above. 3yr maturity, with 5pct annual rate of return
- 1Malaysia retirement scheme for self-employed, run by EPF. For every RM100 contribution, government to contribute 5%, maximum RM60.
- Personal tax relief raised to RM7,000 from RM6,000 now for EPF contribution and life insurance premiums.
Most beneficial for me are the reducing of maximum tax exempt for individual and tax relief on broadband subscription fee up to RM500. For a complete report for Budget 2010, you can refer to its official website.
Reduction of income tax percentage from 27 to 26% is more like a good news, imagine you have 1% more from your annual income to invest (not end up some GLC). And the best thing is you entitled up to RM9000 personal relief (for your annual expense). But if you don’t spend up to RM9000, then the difference is the money you saved.
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Mrcoolku Reply:
October 29th, 2009 at 7:39 pm
It is a good news for middle class malaysian. Thousand saved is thousand earned.:)
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