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Thursday, October 9, 2014

BUDGET 2015: What to look for?



If you are not aware, tomorrow, Malaysians will be looking forward to the Budget 2015, which will be announced by Prime Minister Datuk Seri Najib Razak. The theme of the budget is something to look forward to: 

“Accelerating Growth, Ensuring Fiscal Sustainability and Prospering the Rakyat”.


BUDGET 2015


What is there to look forward to?

Focusing on implementing the Goods and Services Tax (GST) in April next year.

GST may well be the talking point again


Budget 2015 will definitely highlight some of the key things in regards to GST that will take effect in April next year. 

According to Maybank Investment Bank, it is expected that there will be ammendment on the excemptions from GST. Currently, fresh food, public transport, education fees are excempted. It is expected that there will be new excemption from the GST and thus GST revenues could decline to 2.4 billion ringgit from 4 billion ringgit for the April to December period, and 7 billion ringgit for 2016 from the initial projection of 9 billion ringgit.

FUEL SUBSIDY? More likely to be on TARGETED FUEL SUBSIDY

Will there be a targeted subsidy scheme in Malaysia?


The recent petrol hike highlight the seriousness of our government to reduce the fiscal deficit. The lower and middle income group will definitely be impacted by this and thus, it is likely that Najib could announce reform of the fuel subsidy regime in order to move away from a blanket subsidy for all consumers in favour of a system that benefits lower to middle-income earners.

MORE SUBSIDY CUT MAYBE?

It is possible that the government will reduce subsidies on essential food items, such as flour and cooking oil, as well as household gas, said RHB Research.

CASH AIDS are expected to continue

Expect it to be here to stay

We all heard Tun Dr. Mahathir's rant when he criticized Najib on BR1M but like it or not, it's likely to continue. The expansion in BR1M will likely cost the government 7.5 billion ringgit in 2015, up from 4.6 billion ringgit last year, the bank added.

PROPERTY MARKET...."I want my first home dilemma"



You've heard it so often...your friends are part of them and you might be one of them as well. Owning a home has been a real burden in Malaysia, especially in Klang Valley. According to Alliance DBS Research, it is expected that the exemptions on stamp duty for first-time house buyers may be extended. Some other research house expects the Real property gains tax (RPGT) may be raised further this year in an attempt to curb speculation. While many efforts are made to curb speculation, one must wonder if the government will do more to ensure the young adults in the working community could afford their first home. 



A GST rebate may be introduced on building materials used in the construction of medium to low cost properties, MIDF Research said in an interview with Business Times.

LOWER CORPORATE, PERSONAL TAXES

It is likely that this will happen. As Malaysia seek to be competitive in the region, the corporate taxes may be lowered by more than 1% cut announced for 2016. There are others that feel that the government might bring the cut in taxes forward rather than increasing the cut. In the attempt to alleviate the cost of living, new tax reliefs for household may be announced during the Budget.

What EVERYONE is saying?

You probably will hope this is true....PERODUA is hoping that whatever is going to be tabled during Budget 2015 will ease the financing difficulties of car buyers. What do you think?

PAKATAN RAKYAT has their own BUDGET too....

  1. Instead of GST, PR proposes Capital Gain Tax for equities (CGT) and Inheritance Tax
  2. Reduce the deficit by stopping corruption, an estimation of a savings of RM11.8 billion and RM12.4 billion in 2014 with an effective and robust programme.
  3. PETRONAS would be made accountable to the Parliament
  4. Look at the non-transparent 1MDB. (well, at least PR is agreeing to Tun Dr. Mahathir now)
  5. Oppose the recent petrol hike. 
Entrepreneurs are expecting more in this budget. Some are expecting a fund of about RM50,000 to RM100,000 to help in R&D for SME. 

Well, we all have our own expectations, wishes and objectives...but the final say will be coming out tomorrow from Prime Minister Datuk Seri Najib Razak. Hopefully, the Budget will be something that benefit Malaysian in progressing to achieve an advanced and high-income nation status by the year 2020. 

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