As we know, today there announcement for Budget 2020 proposals. I’m not on TV as it is hard to get all the point so I just read at the social media and online newspaper.
I’ve found the summary from The Star as below :-
- GST will not be reintroduced
- New personal income band for taxable income in excess of RM2mil to be taxed at 30% from 28%.
- Increase in tax relief to RM6,000 for medical expenses including fertility treatment.
- Go-ahead for Bandar Malaysia Project which involves 486 acres at Sungai Besi after negotiating better terms for Government.
- 10-year tax exemption for electronics sector than shifts towards n5G and Industry 4.0.
- Bandar Malaysia project to include a People’s Park, additional 5,000 affordable homes and greater Bumiputera participation. Proceeds from the project will be valued and announced in due course to reduce 1MDB debts.
- Prime Minister’s Vision 2020 of Malaysia becoming a high-income nation was derailed due to the shameless turning of Malaysia into a global kleptocracy and involved a total of over RM150 billion.
- The Government is committed to paying off all borrowings and obligations inherited from the previous regime. For 2019, the Government is paying RM2.4 billion to service the debt interest of in 2019 and RM2.7 billion in 2020 for 1Malaysia Development Berhad (1MDB) and SRC International.
- The Government reduced overall debt and liabilities ratio to GDP from 79.3% in 2017 to 75.4% in 2018. However the figure is expected to rise to 77.1% as at end June 2019.
- The Government was successful in reducing country’s overall debt and liabilities ratio to GDP from 79.3% in 2017 to 75.4% in 2018. However the figure is expected to rise to 77.1% as at end June 2019.
- As at end-September 2019, the Government repaid GST refunds amounting to RM15.9 billion to more than 78,000 companies.
- Income tax refunds amounting to RM13.6 billion have been returned to 448,000 companies and 184,000 taxpayers.
- As for RPGT, for the disposal of properties more than five years, the base year of acquisition has been recised from Jan 1 2000 to Jan 2003.
- To reduce supply overhang of condominiums, apartments of RM8.3b, govt will lower threshold on high rise property prices in urban areas for foreign ownership from RM1m to RM600,000 in 2020.
- Government and financial institution to introduce Rent-To-Own (RTO) financing scheme. Up to RM10bil will be provided by the financial institutions. This RTO scheme is for purchase of first home up to RM500,000 property price.
- Government allocates RM100mil to Penang for the development of a cable car up Penang Hill
- Government agreed to move from mechanism-based Power Purchase Agreement (PPA) to an open market system
- Government to provide investment packages of RM1b a yr for 5 yrs to attract Fortune 500 firm in hi-tech, manufacturing, creative, economic sectors
- Digital Service Tax tax will come into effect Jan 1. This is expected to affect services like Netflix and Spotify, digital advertising offered by Google, and also digital software and games distribution companies such as Steam.
- Companies implementing solar leasing activities can get income tax exemption of 70% for up to 10 years
- Government will extend the Green Investment Tax Allowance (GITA), Green Income Tax Exemption (GITE) to 2030
- Government has agreed to move from mechanism-based Power Purchase Agreement (PPA) to an open market system. Renewable energy players will be able to compete directly in the retail market
- Budget has four thrusts including boosting economic growth in new economy and digital era, investing in people
- Government has no intention to reintroduce GST
- Broadband prices have been lowered by 49 pct, triggered a shift in consumer demand for faster internet connections
- Government to introduce a 5G Ecosystem Development Grant worth RM50mil
- RM210mil earmarked to accelerate deployment of new digital infrastructure for public buildings such as schools, industrial parks
- National Fiberisation and Connectivity Plan will adopt public-private partnership approach involving total investment of RM21.6bil
- The government will provide special investment incentives packages worth up to RM1bil a year for five years to attract Fortune 500 companies and “global unicorns” in the high tech, manufacturing, creative and economic sectors.
- The government will also offer special investment incentives packages worth up to RM1bil a year for five years to local companies that would be able to penetrate the world market.
- The government will also allocate RM50mil for the development of a 100-acre site known as the Kota Perdana Special Border Economic Zone in Bukit Kayu Hitam in Kedah.
- To get Malaysians to become used to making digital payments through e-wallets, the government will credit RM30 into the e-wallet of every Malaysian who are 18 and above and earn less than RM100,000 a year.
- The RM30 will be credited on Jan 1 and will be valid for two months. Khazanah Nasional is given RM450mil to achieve this.
- To support bumiputera entrepreneurship development, RM445mil will be allocated to improve access to financing, business premises preparation, and entrepreneurial training.
How about that? What point you get for yourself?