Tax comparision to Singapore? Income Tax package do we still dreaming?
Can we consider... the exchange rate MY to SIN$, 1SIN$ = RM2.44...
Ahhhhh! Lets take example for tax rate comparison below afffterrr the conversion. Like our ruling party government always do for subsidy cut especially on the petrol.
Malaysia:
RM70,000 - RM100,00 (tax rate : 24%)
Singapore:
Sin$80,000 - Sin$160,000 = RM195,000 - RM390,400 (tax rate: 14%)
Mmmm! I see! I see! Do we still the best...??
Hope "Rahsia Besar" won't turn to "Temberang Besar"... We see later..
----
AS in past years, the tabling of the Budget today brings the promise of goodies.
But unlike before, this year everyone has a chance to tell the Prime Minister what they expect in Budget 2012. Datuk Seri Najib Razak opened the lines of communication via his website, Facebook and Twitter, and anyone could share his or her thoughts and give feedback. Hopefully, the majority had taken the opportunity to speak their minds.
Of the many things the Prime Minister has to do for the country and rakyat, one area he should seriously look at is how to help ease the pain of the middle-income group. This is the group that is not as privileged as the super rich or does not get aid like the poor do. This group is squeezed between the super rich and poor.
People in this group do not have big mansions, and nice and fast cars. Nor can they go on luxury holidays like the super rich. And the Government is often not focused on them but the poor, for whom there is assistance in the forms of development and social initiatives.
Prime Minister Datuk Seri Najib Tun Razak all smiles with Budget 2012 report at Finance Ministry. - MOHD SAHAR MISNI/The Star
Today's Budget may have some goodies for the poor and that's a good move, but will the middle-income group get benefits too?
One way to help the middle-income group is to widen the personal tax rate bands, so that the higher tax rates are applicable at higher income levels than before.
Of course, a reduction of the personal tax rates by one, two or three percentage points is welcome, but the impact is greater if the tax rate bands are broadened.
The net effect of this would be higher disposable income for the mid-income group and that in turn helps spur economic activities.
The personal tax rate here is 26%, but only 17% and 15% in Singapore and Hong Kong respectively.
Budget likely to be geared towards reducing the ever-rising cost of living.
No
doubt the citizens of those countries are also subject to a goods and
services tax (GST), but the incremental amount is still lower that what
we pay here in taxes.
Going by Malaysia's tax rate scale, if the chargeable income or gross taxable income less reliefs is anything from RM50,000 to RM70,000 per year, the applicable top tax rate is 19%, but if the income is RM70,000 to RM100,000, the tax rate for the top tier of income rises to 24%.
The minute the chargeable income hits RM100,001, the rate is 26%. That can result in a hefty sum to pay in taxes at a time when the cost of everything is rising.
Often, when Singapore is taken as a comparison, the naysayers don't like it, but let's not forget that those across the causeway pay less taxes than us.
An Ernst & Young study found there was a big disparity in the effective tax rate between someone working here and a counterpart across the causeway, on the assumption that their lifestyles are the same.
Let's say you are earning RM100,000 here and I am earning the same amount in Singapore dollars in the republic. My effective tax rate minus relief and based on 2010 tax rate would be 6.68%, while yours is 11.45%. That means I pay S$6,680 in taxes and you RM11,445.
That means I have more disposable income and that also explains why some of our talents prefer to work across the causeway too.
While we all know that the Government needs to collect more taxes to fund the economy, it can also look into selling spectrum and pushing for more private investments.
This year, the estimate is that the Government will collect RM97bil in taxes from an original estimate of RM91bil despite a softening growth outlook.
That represents a significant increase of 13% over a record RM86bil tax revenue collected the previous year.
The time has come to look at broadening tax bands. Widen them so that the top band (which attracts a tax rate of 26%) is for income of RM200,001 and more, instead of RM100,001 or more.
The thrust should be to put more money into people's pockets at a time when the whole world is bracing for a double-dip recession.
Putting more money in the hands of the middle-income group should also be the focus as they too are hit by the rising cost of living.
Over to you, Mr Prime Minister.
Deputy news editor B.K. Sidhu says, Thank you, Steve, for bringing iPad into our lives.'
Ahhhhh! Lets take example for tax rate comparison below afffterrr the conversion. Like our ruling party government always do for subsidy cut especially on the petrol.
Malaysia:
RM70,000 - RM100,00 (tax rate : 24%)
Singapore:
Sin$80,000 - Sin$160,000 = RM195,000 - RM390,400 (tax rate: 14%)
Mmmm! I see! I see! Do we still the best...??
Hope "Rahsia Besar" won't turn to "Temberang Besar"... We see later..
----
Thestar: Friday October 7, 2011
Budget: Mr Prime Minister, please ease the pain of mid-income group
Friday Reflections - By B.K. Sidhu
But unlike before, this year everyone has a chance to tell the Prime Minister what they expect in Budget 2012. Datuk Seri Najib Razak opened the lines of communication via his website, Facebook and Twitter, and anyone could share his or her thoughts and give feedback. Hopefully, the majority had taken the opportunity to speak their minds.
Of the many things the Prime Minister has to do for the country and rakyat, one area he should seriously look at is how to help ease the pain of the middle-income group. This is the group that is not as privileged as the super rich or does not get aid like the poor do. This group is squeezed between the super rich and poor.
People in this group do not have big mansions, and nice and fast cars. Nor can they go on luxury holidays like the super rich. And the Government is often not focused on them but the poor, for whom there is assistance in the forms of development and social initiatives.
Prime Minister Datuk Seri Najib Tun Razak all smiles with Budget 2012 report at Finance Ministry. - MOHD SAHAR MISNI/The Star One way to help the middle-income group is to widen the personal tax rate bands, so that the higher tax rates are applicable at higher income levels than before.
Of course, a reduction of the personal tax rates by one, two or three percentage points is welcome, but the impact is greater if the tax rate bands are broadened.
The net effect of this would be higher disposable income for the mid-income group and that in turn helps spur economic activities.
The personal tax rate here is 26%, but only 17% and 15% in Singapore and Hong Kong respectively.
Budget likely to be geared towards reducing the ever-rising cost of living. Going by Malaysia's tax rate scale, if the chargeable income or gross taxable income less reliefs is anything from RM50,000 to RM70,000 per year, the applicable top tax rate is 19%, but if the income is RM70,000 to RM100,000, the tax rate for the top tier of income rises to 24%.
The minute the chargeable income hits RM100,001, the rate is 26%. That can result in a hefty sum to pay in taxes at a time when the cost of everything is rising.
Often, when Singapore is taken as a comparison, the naysayers don't like it, but let's not forget that those across the causeway pay less taxes than us.
An Ernst & Young study found there was a big disparity in the effective tax rate between someone working here and a counterpart across the causeway, on the assumption that their lifestyles are the same.
Let's say you are earning RM100,000 here and I am earning the same amount in Singapore dollars in the republic. My effective tax rate minus relief and based on 2010 tax rate would be 6.68%, while yours is 11.45%. That means I pay S$6,680 in taxes and you RM11,445.
While we all know that the Government needs to collect more taxes to fund the economy, it can also look into selling spectrum and pushing for more private investments.
This year, the estimate is that the Government will collect RM97bil in taxes from an original estimate of RM91bil despite a softening growth outlook.
That represents a significant increase of 13% over a record RM86bil tax revenue collected the previous year.
The time has come to look at broadening tax bands. Widen them so that the top band (which attracts a tax rate of 26%) is for income of RM200,001 and more, instead of RM100,001 or more.
The thrust should be to put more money into people's pockets at a time when the whole world is bracing for a double-dip recession.
Putting more money in the hands of the middle-income group should also be the focus as they too are hit by the rising cost of living.
Over to you, Mr Prime Minister.
Deputy news editor B.K. Sidhu says, Thank you, Steve, for bringing iPad into our lives.'
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