Tax relief, GST rate maintained in revised budget

PETALING JAYA: Prime Minister Najib Razak today announced a revised budget to ensure the nation’s “economy and financial position remained on the right trajectory” as well as to safeguard the wellbeing of the rakyat.

The re-calibrated budget, the prime minister explained in a live telecast, would include precautionary and proactive measures to manage national revenue and expenditures.

These initiatives, said Najib, who is also the Finance Minister, were critical to ensure sustainable economic growth so the nation could overcome the difficult challenges it was faced with.






“We have done it before, God willing, we can do it again,” he said, alluding to the 1997 economic crisis.

Earlier this month, Najib said Budget 2016 would be “re-calibrated” to reflect the current economic climate.

When the 2016 budget was tabled in October last year, the oil price assumption was US$48 (RM204) per barrel.

Currently crude oil is fetching only about US$30 (RM127) per barrel, and that has translated to lesser revenue for the government.





Among the highlights of the revised budget:

• Special tax relief of RM2,000 for individuals earning RM8,000 and below per month, for the 2015 assessment year.
  
• Reduction by 3 per cent for employee’s contribution to the Employees Provident Fund (EPF), while that of employers would remain unchanged.
  
• No visa required for tourists from China who visit Malaysia between March 1 and December 31 this year.
  
• Current 6 per cent rate on Goods and Services Tax (GST) to be maintained.
  
• Sales of new houses costing RM300,000 and below only to first-time house buyers.
  
• Continuation of housing loans at 4 per cent interest for 10,000 housebuyers who are buying homes costing RM35,000 and less.
  
• Continuation of one annual increment for civil servants on 1 July 2016.
  
• Continuation of four programmes under the Public Service Department (PSD) sponsorship, namely the National Scholarship Programme for 20 top SPM students to pursue studies at renowned universities globally; the Special Engineering Programme for 200 students to Japan, Korea, Germany and France; the Bursary Graduate Programme for 744 students to pursue undergraduate studies in public universities and private institutions of higher learning in the country; and the new intake of 8,000 students to be awarded scholarships to pursue undergraduate studies in the country.

Source from FMT NEWS