It’s old news when we say things are getting expensive.
With the latest fuel subsidy cut, who is to say there will be no knock-on effect on the prices of other items. Will there be any relief for Malaysians when Budget 2015 is revealed tomorrow? A question we ask when we take a look at 10 prominent items in the government’s annual budget.
Fear or no fear, the GST is here!
Anxious business owners, ordinary folk and foreign investors are watching this one closely as Malaysia unveils the Goods and Services Tax (GST) next April.
Prices of goods are not getting any lower, and there is a general feeling that the GST will hurt our pockets even more. But taking that into consideration, there may be a chance the budget will include more exemptions, expanding the list from food, public transport and healthcare.
This means that there may be more goods that we won’t be paying GST for.
Pay less income tax
You can almost hear the sigh of relief from Malaysians should they be required to pay less than before. There is a possibility that there will be more relief or rebates to lift the burden off personal income tax (which is, you know, the tax you pay on your salaries each month).
What this means is that you may be able to exempt more items or services from being taxed, adding to the growing list of books, broadband services, your sporting equipment and even your blood test.
In the private sector, there is talk of a lowered corporate tax rate of 1 %.
No boys, please
The budget may see more incentives for women according to a few reports but no real details have been shared. All we know is that the government has been talking to gender-based groups to get their feedback on drafting the budget.
It could mean that there may be more incentives for women and perhaps single mothers too.
BR1M: Better Rebates for 1Malaysia?
You read that right. We’re expecting a possible increase in cash aid, particularly for the lower-income groups, senior citizens and pensioners; groups that could be at a disadvantage as cost of living increases.
This could mean a rise fromf the existing BR1M payouts of RM500 and RM900 for households that earn less than RM3,000 a month.
Cigarettes and booze
Can you afford cigarettes in 2015 or maybe a drink? Cigarette prices have gone up so it is unlikely that prices may be hiked for a second time in a short period.
But there are reports quoting a possible excise duty hike for smokes. Makes you think, that in order to stop burning a hole in your pocket, maybe it’s time to quit smoking.
Pay more for flour, cooking oil and household gas?
We are already amongst the top 10 countries in the world selling the cheapest petrol making it attractive for petrol smugglers and fuel hoarders. So the government may need to extend its subsidy cuts to food items and cooking fuel.
Why is the government doing this? To trim its budget deficit as a way of managing the economy and stem any growing debt.
A high deficit means that a country is spending more than it is earning. In Malaysia’s case we have clocked a deficit of 3.9% out of the country’s earnings; a figure that needs to come down fast.
Growing the entrepreneurship sector
With US President Barack Obama’s appearance in Malaysia and a strong show of support during the Global Entrepreneurship Summit hosted by KL, entrepreneurship is THE sector that Malaysia wants to champion.
The launch of the Malaysian Global Innovation and Creativity Centre (MaGIC) is an example of how it wants to back creativity and innovation among Malaysians. We expect some news on this sector in the Budget 2015.
Cheaper homes but higher tax to stop speculation
Maybe, just maybe, we will see more affordable homes in Malaysia. Those companies who decide to build cheaper housing may not have to pay GST for the materials they use.
Plus there may be incentives for those buying their first home. This is mainly a relief from the stamp duty they are required to pay. On top of that, Real Property Gains Tax (RPGT) may be raised in order to curb speculation and slow down the appreciation of house prices.
Cheaper books!
Now that’s a title worth smiling at. Book vouchers may be given out as a way to encourage students to get reading and excel at school.
Civil servants
Close to 1.5 million Malaysian civil servants are usually the focus of most Malaysian budgets and it is no different this time around.
Those working in the civil service are probably hoping for a pay rise or a special bonus but they will have to wait like everyone else for the news as the government offered no hints at all. On the flipside, adjustments are likely to be made to control the operational expenses related to the wages of these public servants.
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