Friday, October 23, 2009

2010 Budget comments

I've been very critical of the present ruling government for a while but I think they begin to listen to Rakyat. If they walk the talk, they will have a chance in 2013.

Thumb up:
1) Committed to reduce to 5.6% of fiscal deficit with prudent GDP growth expectation of 2-3%. Some upside if growth comes in stronger than expected.

2) Maximum personal income tax reduction from 27% to 26%. EPF/insurance relief from $6k to $7 and RM 500/year relief for broadband subscription. Tax relief from $ 8 k to $ 9 k. High income group will be a bit happier.

3) Incentives to develop service sector.

4) Incentives to promote Green technology.

5) Reverting to 11% saving on EPF.

6) Working on public transportation

7) Taking care of student welfare and begin to talk about merits.

Minor dissapointment
1) Property taxes are up on residual value - 5%.

2) No goodies for REIT

3) Why discriminate between those work in Iskandar (15%) vs. the rest (26% max)?

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