The Government has reiterated its commitment to cut income taxes by between 1% to 3% for the 2015 year of assessment, meaning some 300,000 individual taxpayers will no longer pay income tax.Under Budget 2015, tax payers with family and income of RM4,000 per month will not have tax liability, Prime Minister Datuk Seri Najib Tun Razak said.Individual income taxes will be restructured whereby the chargeable income subject to the maximum rate will be increased from above RM100,000 to RM400,000.The current maximum tax rate at 26% will be reduced to 24%, 24.5% and 25%. This will result in tax savings of at least 5.3% for the tax payer. - Star, 11/10/2014, Budget 2015: Income tax waiver for 300,000
Monday, October 13, 2014
Helping the poor is OK - but, if we really analyze this year's budget, we see that once again Najib is really helping the rich and very rich....in Malaysia. Countries earn from taxation - and naturally for those who earn so much more are taxed even more ...up to 45%, but alas Najib's government has been slowly but surely reducing the tax obligations of the RICH...the VERY RICH ...and also CORPORATIONs.
Many would be distracted by the increase in BR1M, and of the no more requirement of those who earns RM48,000 and below ("tax payers with family and income of RM4,000 per month"). There should be greater exemption for personal, spouse, children, housing, education, etc,,,, all these are good,,,,BUT why have the tax obligation of the RICH and VERY RICH being also reduced...? Explain this. Malaysia has financial difficulties - hence all subsidies are going, and prices are increasing - so why these helping the rich? see earlier post that looks at some other countries - Increase Individual Chargeable Income Tax Rates - 30 - 50%? Malaysia desperately needs money...
Last year the government reduced the tax rates for all of us who had a chargeable income of RM50,000 or less by ONE (1)% - whilst the rates of those who had a higher chargeable income was reduced by more than 1% - some even 3% ---
And again this time around, further reduction for the rich and very rich.... There must be higher rates for those with chargeable income of more than RM100,000, more than RM250,000, more than RM500,000... and even higher rates for those with chargeable income of more than RM1mil, RM5mil, RM10mil.... how much more can the government earn by doing this? ....maybe even sufficient to increase subsidies and keep the price of cooking gas, petrol, electricity, telecommunication, radio-TV, basic food low - maybe even money to help keep prices of homes low...