KUALA LUMPUR: There will be no GST (Goods and Service Tax) imposed on RON95 petrol, diesel, and LPG, while individual income tax payers will enjoy lower rates in Budget 2015 as announced by Prime Minister Datuk Seri Najib Tun Razak.
The other highlights of Budget 2015 include:
Income tax rates to be cut by one to three percentage points. Families with monthly income of less than RM4,000 will not have to pay tax - See more at: http://www.themalaysianinsider.com/malaysia/article/budget-2015-live-updates#sthash.jIvWgnab.dpuf
* Income tax rates to be cut by one to three percentage points
* Families with monthly income of less than RM4,000 will not have to pay tax
* Government revenue estimated at RM23.2bil with implementation of GST
* Government to exempt goods from GST amounting to a total of RM3.8bil
* Items exempted from GST are - all types of fruits, both local and imported; white bread and wholemeal bread; Coffee powder, tea dust and cocoa powder; Yellow mee, kuey teow, laksa and meehoon; essential medicines covering nearly 2,900 brands which are used to treat 30 types of diseases, including heart failure, diabetes, hypertension, cancer and for fertility treatment
* With GST implementation, Sales and Services Tax (SST) abolished, resulting in revenue foregone of RM13.8bil
* RM690mill net revenue collection from GST
* RM4.9bil to be channelled back to the people through assistance programmes such as the increase in Bantuan Rakyat 1Malaysia (BR1M)
* BR1M for those earning RM3,000 and below will be increased to RM950 from RM650
* For those earning RM3,000 to RM4,000, BR1M increased to RM750 (from RM450)
* Allowance of MPs of Dewan Rakyat will be increased from the equivalent grade 54 to equivalent grade Jusa C, consistent with their responsibility
* Allowance of MPs of Dewan Negara will be increased from equivalent grade 48 to equivalent between grade 54 and Jusa C
* Salaries and allowances of the Speaker of Dewan Rakyat and Speaker of Dewan Negara as well as their respective Deputies will be increased effective 1 Jan 2015
* Government will review the salary scheme of members of the administration. This includes the Prime Minister, the Deputy Prime Minister, Ministers and Deputy Ministers
* A half-month bonus with a minimum payment of RM500 to be paid in January 2015 for civil servants
* Government pensioners will also receive special financial assistance of RM250
* Several infrastructure projects will be implemented - 59km Sungai Besi-Ulu Klang Expressway (SUKE) with total construction cost of RM5.3bil; 276km West Coast Expressway from Taiping to Banting (RM5bil); 47km Damansara-Shah Alam Highway (DASH)(RM4.2bil); 36km Eastern Klang Valley Expressway (EKVE)(RM1.6bil); 56km Second MRT Line from Selayang to Putrajaya (estimated RM23bil); LRT 3 Project linking Bandar Utama to Shah Alam and Klang (about RM9bil); and RM150mil upgrading of East Coast railway line
* RM223.4bil for operating expenditure, RM50.5bil for development expenditure
* RM65.6bil for emoluments, RM38.1bil for supplies and services
* RM29.3bil allocated to the economic sector
* RM12.6bil allocated to the social sector for education, training, health, housing and well-being of society
* RM4.9bil earmarked for the security sector, RM1.7bil for general administration and RM2bil for contingencies
* For 2015, economic growth expected to remain strong between 5% and 6%, fiscal deficit projected to further decline to 3% of GDP
* Pengerang Integrated Petroleum Complex project with total investment of RM69bil, which is expected to create over 10,000 jobs
* RM70mil Sustainable Mobility Fund to be established under SME Bank - 50 electric buses will be introduced initially
* RM100mil Digital Content Industry Fund to be set up under the Communications and Multimedia Commission to further promote creative industries like animation, filming, designing and cultural heritage
* RM70mil Sustainable Mobility Fund to be established under SME Bank - 50 electric buses will be introduced initially
* RM100mil Digital Content Industry Fund to be set up under the Communications and Multimedia Commission to further promote creative industries like animation, filming, designing and cultural heritage
PETALING JAYA: Goods and Services Tax (GST), tax breaks for 300,000 individual taxpayers and higher 1Malaysia People's Aid (BR1M) payouts - these were among the highlights of Prime Minister Datuk Seri Najib Abdul Razak's Budget 2015 speech.
Najib, who presented his budget speech before the Dewan Rakyat on Friday, first shook Parliament when he announced that 2,900 items would be GST-free.
"Based on the feedback from all segments of society, the Government agrees to widen the scope of items that will not be subjected to GST," said Najib.
He said items that would not be subjected to GST included all types of local and imported fruit, white and wholemeal bread, coffee powder, cocoa powder and tea dust and yellow mee, kuey teow, laksa and mee hoon, along with the National Essential Medicine covering almost 2,900 medicine brands.
"These medicines are used to treat 30 types of diseases including heart failure, diabetes, hypertension, cancer and fertility treatment," said Najib.
Aside from these items, he added that reading materials - including children's colouring books, exercise and reference books, text books, dictionaries and religious books and newspapers would be GST-free.
"In addition, the Government has also agreed electricity consumption that is not subject to GST be increased from the first 200 units to 300 units. This will benefit 70% of households. Further, the Government has agreed that the retail sale of RON95 petrol, diesel and LPG be given relief from the payment of GST," said Najib.
He added these measure were so that consumers and targeted groups would not be burdened, and to ensure the implementation of GST would not burden the rakyat.
In his Budget 2014 speech last October, Najib had announced that the hotly-debated GST would be introduced from April 1, 2015 at a rate of 6%, which he had said was the lowest in the Southeast Asia region, lower than the 10% imposed by Indonesia, Vietnam, Cambodia, the Philippines, and Laos and 7% in Singapore and Thailand.
On the imposition of GST, Najib said that out of the 944 goods and services covered under the Consumer Price Index, the prices of 532, or 56% of items were expected to rise by 4.1%.
"Among the goods are medicines, electrical appliances such as refrigerators and washing machines, textile products, plastic products such as pails and plates, shoes and slippers, household furniture, baby diapers, soap, meat, chicken eggs, cooking oil, seafood, rice and vegetables," said Najib.
He added that another 354 goods and services would see a price increase, but one that was less than 5.8%.
"The Government hopes that traders will be responsible and not raise prices indiscriminately to burden the rakyat. The Government will disseminate shoppers’ guide to enable consumers compare prices before and after the implementation of GST," said Najib.
On the tax exemption, Najib said that individual income tax rates will be reduced by one to three percentage points.
"With this measure, 300,000 individual taxpayers will no longer pay income tax. Tax payers with family and income of RM4,000 per month will not have tax liability.
“Individual income tax will be restructured whereby the chargeable income subject to the maximum rate will be increased from exceeding RM100,000 to exceeding RM400,000," said Najib.
He added that the current maximum tax rate at 26% will be reduced to 24%, 24.5% and 25%, which will result in the existing taxpayer enjoying a tax saving of at least 5.3%.
"For year of assessment 2015, cooperative income tax rate will also be reduced by 1 to 2 percentage points. In addition, secretarial fee and tax filing fee are allowed as deduction. For year of assessment 2016, corporate income tax rate will be reduced by one percentage point from 25% to 24%; and for 2016, income tax rate for SMEs will also be reduced by one percentage point from 20% to 19%," said Najib.
On increasing the BR1M payout, Najib said this could be done after taking into consideration the increased revenue collection from GST and the "affordability of the Government".
"We will increase BR1M from RM650 to RM950. The assistance is for households with a monthly income of RM3,000 and below. It will be disbursed in three instalments of RM300 each to be paid in January and May with the balance of RM350 from September 2015," said Najib.
He added that for households with a monthly income between RM3,000 and RM4,000, the Government will increase BR1M from RM450 to RM750.
"This assistance will be disbursed in three instalments, that is, RM200 to be paid in January and May while the balance of RM350 from September 2015, and for single individuals aged 21 and above and with a monthly income not exceeding RM2,000, BR1M will be increased from RM300 to RM350 a year. This assistance will be disbursed early next year," said Najib.
He added that the Government would replace the group takaful insurance or i-BR1M with Family Bereavement Scheme which will entitle the next of kin of BR1M recipients to receive RM1,000 effective for a year.
Civil servants will be given half-month bonus, Najib also announced.
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