2015 Malaysia Budget Highlight

Maybe some of you watch or listen the 2015 Malaysia Budget table by Prime Minister Datuk Seri Najib Tun Razak who is also Finance Minister at the Dewan Rakyat today.
The budget proposals were crafted based on the theme ‘People Economy’. This is some of 2015 Budget highlights :-
NAJIB_101014_TMIAFIF_007

– Government aims to lower fiscal deficit to 3.0 per cent in 2015 from an expected 3.5 per cent this year.

– 2015 budget allocates total RM273.9 billion, an increase of RM9.8 billion compared with the 2014 initial allocation.

– Operating expenditure RM223.4 billion, development expenditure RM50.5 billion.

– Payments to civil servants of RM65.6 billion is largest operating expenditure item.

– Federal government revenue collection estimated at RM235.2 billion in 2015, an increase of RM10.2 billion from 2014.

Taxes
due-tax
– Revenue from goods and services tax to be introduced in April at rate of 6 per cent expected to be RM23.2 billion, but after allowing for the abolition of the sales and services tax, and exemptions and funds channelled back to people through assistance programmes net revenue collection is expected to only be RM690 million.

– Income tax rates to be cut by one to three percentage points. Families with monthly income of less than RM4,000 will not have to pay tax.

– From 2016, the corporate tax rate will be reduced by one percentage point from 25 per cent to 24 per cent, and for small and medium sized enterprises to 19 per cent from 20 per cent.

Subsidies

– The Economic Report said government plans to reduce the overall bill for subsidies and cash assistance by 7 per cent to RM37.7 billion in 2015 from RM40.6 billion in 2014.

– Prime Minister Najib says he will reform the petroleum subsidy regime soon, to adopt a system that benefits less well off.

Property

– Budget extends 50 per cent stamp duty exemption for first-time home buyers and increases the purcase limit from RM400,000 to RM500,000. The exemption will be given until the end of 2016.

– Malaysia to move to self-assessment for real property gains tax from 2016.

Commodities

– Export duty exemption for crude palm oil extended until December 31, 2014.

Development

– Eastern Malaysian states of Sabah and Sarawak to be allocated RM4.5 billion to upgrade facilities in rural areas.

Goods and Service Tax
GST Malaysia

* Goods and Services Tax (GST) : RON95 petrol, diesel and liquefied petroleum gas (LPG) exempted from GST.

* Revenue from GST in 2015 estimated at RM23.2 billion.

* Exemption of GST on several goods amounting to RM3.8 billion.

* Abolishment of SST will see RM13.8 billion in revenue forgone.

* Net revenue collection from GST will only amount to RM690 million.

* Establish another 20 KR1M in Peninsular Malaysia.

* Set up price watch team comprising consumer associations.

* Strengthen GST Enforcement Unit with 2,270 personnel, Price Monitoring Unit with 1,300 personnel and Consumer Squads with 202,800 volunteers as well as involve 579 mukim and village heads.

* Electricity consumption not subject to GST increased from the first 200 units to 300 units, move to benefit 70% of households.

* Goods and Services Tax (GST) : RON95 petrol, diesel and liquefied petroleum gas (LPG) exempted from GST.

* Revenue from GST in 2015 estimated at RM23.2 billion.

* Exemption of GST on several goods amounting to RM3.8 billion.

* Abolishment of SST will see RM13.8 billion in revenue forgone.

* Net revenue collection from GST will only amount to RM690 million.

* Establish another 20 KR1M in Peninsular Malaysia.

* Set up price watch team comprising consumer associations.

* Strengthen GST Enforcement Unit with 2,270 personnel, Price Monitoring Unit with 1,300 personnel and Consumer Squads with 202,800 volunteers as well as involve 579 mukim and village heads.

* Electricity consumption not subject to GST increased from the first 200 units to 300 units, move to benefit 70% of households.

| Infographic : How GST Affect You |

Property
– Budget extends 50% stamp duty exemption for first time home buyers and increases the purchase limit from RM400,000 to RM500,000. The exemption will be given until the end of 2016.

– A 10% loan guarantee to enable borrowers to obtain full financing including cost of insurance. Borrowers can also withdraw from EPF Account 2 to top up their monthly installment and other related costs.

– This guarantee is offered on a “first come, first served basis’ for 20,000 units only.

– Ceiling of household income for PR1MA homes increased to RM10,000, RM1.3 billion to be allocated to build 80,000 units PR1MA homes.

BR1M
BR1M

* BR1M for those earning RM3,000 and below will be increased to RM950 from RM650.

* For those earning RM3,000 to RM4,000, BR1M increased to RM750 (from RM450).

* For the above two categories, payment will be made in three instalments – January, May and September.

* For those aged 21 and above, with income not exceeeding RM2,000, BR1M increased to RM350 (from RM300) in one-off payment early next year.

PTPTN
For students with an outstanding amount in their PTPTN loans, a 20% discount will be given if they make a total repayment of their loan, on or before March 31, 2015.

For detail on 2015 Budget, visit Treasury website at http://www.treasury.gov.my/

As we know, today there announcement for Budget 2020 proposals. I'm not on TV as
An entrepreneur requires a lot of dedication to build a successful business. But lack of

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