Increase Individual Chargeable Income Tax Rates - 30 - 50%? Malaysia desperately needs money...

Income tax rates must be increased - and it must be increased more for those who earn more....

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% ---  

NOW, it is just that the more chargeable income you have, the higher your tax rates... but the tax rates for the RICH in Malaysia is way too low...

The following are the AUSTRALIAN rates for 2014-15 apply from 1 July 2014.

Taxable income	Tax on this income
0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $18,200
$37,001 – $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%

AUSTRALIA
Well those with chargeable income less that RM52,000 do not have to pay income tax
> RM52,000 but less than RM105,000 - you pay 19% to income tax
> RM105,000 but less than RM228,000 - 32.5%
> RM228,000 but less than RM514,000 -  37%
More than RM514,000 - 45%

And, in Malaysia

- those with more than RM52,000 are paying only 16% (government reduced from 19%), if more than RM70k, you pay 21%

- those above RM105K - pay 24- 25% > whilst in Australia, they pay 32.5%(Rm to RM228k) and 37%(up to about RM514k)

- and the SUPER RICH in Malaysia earning RM400 and above pays only 25%.... (In Australia, as a comparison those with chargeable income more than RM514k are paying 45%)

SO FOR THE SUPER RICH IN MALAYSIA, there should be a staggered rate... 
With chargeable income more than RM50k - 20%
With chargeable income more than RM75k - 21%
With chargeable income more than RM100K - 30%
With chargeable income more than RM200k - 32%
With chargeable income more than RM300k - 35%
With chargeable income more than RM400k - 40%
With chargeable income more than RM500K - 45%
With chargeable income more than RM1 mil - 48%
With chargeable income more than RM2 mil - 50%

* Now , the super rich usually have their smart lawyers and accountants that find every little loop hole in income tax laws to pay the absolute minimum to the tax department...

Now, the other thing that the Malaysian government must ensure is that all businesses/corporations are also paying their taxes - stop the practice of giving 'tax holidays' and special concessions to the foreign companies - this is after all most discriminatory to local businesses.

GST - the mentality under the GST is that the consumer pays taxes for the goods and services he acquires...., and the government will try to sell it as this being a FAIR SYSTEM and all(the rich and the poor) are being treated equally. You buy an expensive car, you pay more in taxes - you buy a cheap car, you pay less...

Thanks to Malaysia's adoption of neo-liberalism, free trade, privatization, competition at the market place, etc.... we  now have a large and growing gap between the RICH and the POOR. Compounded with preferential treatment, corruption, etc - a few has become really rich. Anyway, the only JUST acceptable model when it comes to taxation - where money is acquired for the common good of the people in Malaysia, is that the richer you are the more you should be paying... in fact, you should be paying all...

The poor workers are only getting minimum wages of RM900 per month - and the BRIM payouts shows that the government acknowledges that households(usu. husband and wife) earning less than RM3,000 needs financial assistance. 

There must be realistic deductions of the income ...

Personal Deductions(RM1,500 X 12) - RM18,000

Spouse Deduction (RM1,500 X12) - RM18,000

Children (it should be all not just only for so many per fly - we do not have a child limit policy in Malaysia) - there should be an increase for school going children, higher still if child is in a school not staying with parents, higher still if they are forced to enroll in some private tertiary education provider...

Elderly parents(above 60)

Parents/Dependents (by result of illness/accidents, etc)

In the coming BUDGET, there must also an increase allocation for HEALTH - and ensure FREE healthcare and treatment to all, including for heart ailments. [In Thailand, a person pays RM3 only - and it covers the surgery, the ward stay, X-rays, etc... everything for RM3 - so why can't we have this in Malaysia???]

MTUC President recently came out and talked about reducing personal income tax - but really they were talking about workers - the poorer workers in Malaysia in light with the increasing cost of living, as 'financial problems' have forced Malaysia to reduce subsidies and increase cost of many items...

MTUC must be very careful, this Prime Minister and the government may use this and reduce personal income tax like they did last year, whereby the bigger reduction will be for the RICH...and the VERY RICH. After all, MTUC and Malaysian workers remember how this government did not listen to MTUC, the Unions, the workers and civil society in bringing in the 'contractor for labour system'- and the goverment seem to justify this saying that this was because workers wanted this ....the National Union of Plantation Workers(NUPW) --- so beware, the RICH may be assisted in a reduction of their income tax obligation to Malaysia because this was what the people wanted - see even Khalid Atan, the President of MTUC' said that personal income tax should be reduced...well, talk to Khalid, he was talking really about the poor, the worker, those in the lower-incomed bracket - not at all the rich and very rich who should be paying MORE income tax...

I would say that those who have chargeable income of RM20,000 or less should no longer be required to pay income tax. Likewise the basic exemption for the individual person, spouse, children and dependents must be increased. 

For those with chargeable income more than RM50,000, income tax rates must be substantially increased.... as the amount of chargeable income increases.

MALAYSIA SHOULD STOP PROTECTING WEALTH OF THE RICH - Justice demands that the RICH be taxed more, and they can be 'generous' and help Malaysia out of this financial predicament that this government has landed us in...

 

MTUC: Reduce personal income tax

Malaysian Trades Union Congress (MTUC) president Mohd Khalid Atan has called on the government to announce the postponement of GST in the 2015 Budget because the people are suffering. — TRP graphic

KUALA LUMPUR, Oct 2, 2014:

The Malaysian Trades Union Congress (MTUC) has called on the government to announce a reduction in individual income tax in the forthcoming Budget 2015.

Its president, Mohd Khalid Atan, told The Rakyat Post today that corporate income tax had been reduced nearly every year. He said at one point it stood at 41%, but it was below 25% now.

He asked why the government could not do the same for the people.

This, he said, was in light of workers, be it from the lower or middle-income groups, facing a very uncertain future due to the rising cost of living.

“The people will face a further burden because of the implementation of the Goods and Services Tax (GST) next year.”

Mohd Khalid added that no matter what the government had done in recent times in explaining the GST to the people, it would still have an affect on the people.

He then called on the government to announce the postponement of GST in the budget because the people were suffering.

The MTUC president also said the government should announce a mandatory RM300 cost-of-living adjustment for the private sector, saying this would help alleviate some of the burden.

Meanwhile, he said Prime Minister Datuk Seri Najib Razak should take the opportunity to announce a higher minimum wage.

He said the present RM900 was no longer relevant, pointing out that a basic wage of RM1,200 made more sense, particularly with the impending implementation of GST and the rationalisation of subsidies.

Mohd Khalid also expressed his hope that the government would take the necessary action to help reduce the burden the people were feeling.

Reactions have been varied since the subsidy for RON95 petrol and diesel was reduced by 20 sen today, making the price of fuel go up 20 sen, with Najib expected to table the 2015 Budget next Friday. - The Rakyat Post, 2/10/2014, MTUC: Reduce personal income tax