PM Najib’s maiden budget got mixed reviews, (pro establishment) newspapers hailed it as a rakyat-friendly budget while Anwar (of the Reformasi fame) says it’s nothing but a short term policy.My 2 cents;
Slashing the top income tax rate from 27 to 26% will only benefit the higher income bracket, those earning more than RM100,000. The aim was to spur consumer spending but then, this group tend to shop overseas (at least in Singapore, Thailand, Bandung if not London or Paris), so how will that help the domestic economy?
To increase disposable income, personal tax relief, tax relief for EPF contribution and life insurance premium will be increased by RM1K to RM9,000 and RM7,000 respectively. On the average, people will have RM166 extra to spend every month. Instead of tax reliefs, why can’t the government do something to increase the people’s wages? For someone earning RM3,000, RM166 is only a 5.5% increment. What can RM166 buy anyway? What about reducing the tax rate across the board?
Almost everyone owns a credit card. The government gives us RM166 and take back RM50, per card. If you have four cards, you’ll be RM34 worse off. Sigh.
Actually I don’t mind paying slightly higher taxes, for as long as I get something back in return. I want to see my hard earned tax money being spent to upgrade Federal Route 54 (Jalan Kuala Selangor), improve the conditions of the schools. I don’t want my tax money being wasted on sending men to space or compensating tolled road operators. I wouldn’t mind seeing my tax money being used to pay the doctors and teachers better, to improve our medical and teaching quality.
I will be very pissed if my hard earned tax money is used to fund politicians’ (and their cronies’) gallivanting trips overseas.
You can’t please everyone can you?
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