Assalamualaikum w.b.t.,

Hidup di dunia yang sementara ini banyak mengabui mata kita tentang matlamat kehidupan yang sebenarnya. Kita semakin terdesak dengan himpitan kehidupan dan berlumba-lumba untuk mencari kehidupan yang lazimnya lebih menampakkan keduniaa semata-mata.
Apakah ada di antara pelaburan yang semakin hari semakin kurang diberikan tumpuan? Namun, apakah kita menidakkan keperluan yang perlu kita sediakan di dunia bagi persediaan akhirat? Bagaimanakah pula pelaburan di dunia yang wajar dilakukan untuk persediaan akhirat kita? Wajar rasanya kita sama-sama bincangkan dan jadikan maklumat bersama ini sebagai panduan kita merentasi dunia untuk menempah tempat yang selesa di akhirat kelak, insyaallah.

Pandangan serta komen rakan-taulan, pak-pak ustaz, profesionalis, akauntan, hartawan, dermawan, pak/mak wan dan sebagainya boleh dikongsi untuk dijadikan panduan disamping memperkuatkan ukhwah sesama kita. Sila diemailkan pandangan anda ke

Pemberitahuan: Semua maklumat di blog ini adalah pandangan peribadi melainkan dinyatakan sebaliknya. Sila rujuk kepada institusi atau badan yang berkaitan untuk maklumat lebih lanjut. Sebarang rujukan dari blog ini adalah risiko sendiri.Pengarang tidak bertanggungjawab di atas sebarang masalah yang timbul disebabkan oleh bahan diblog ini.

Sunday, October 27, 2013

What Benefit You Get From 2014 Budget???

View your self the highlights copied from

Following are highlights from Budget 2014:
* Pensioners will receive a special financial assistance of RM250 to assist them in meeting the rising cost of living.
* Government to give a half-month bonus for 2013 with a minimum payment of RM500 to be paid in early January 2014.

* Cash handouts to households with a monthly income of below RM3,000 will be increased to RM650 from RM500.
* For individuals aged 21 and above and with a monthly income not exceeding RM2,000, cash handouts will be increased to RM300 from RM250.
* For the first time, cash assistance of RM450 will be extended to households with a monthly income of between RM3,000-RM4,000.
* To implement all cash schemes, government will allocate RM4.6 billion which is expected to benefit 7.9 million recipients.

* For gains on properties disposed within the holding period of up to 3 years, RPGT rate is increased to 30%.
* For disposals within the holding period up to 4 and 5 years, the rates are increased to 20% and 15%, respectively.
* Raise the minimum price of property that can be purchased by foreigners to 1 million ringgit from RM500,000.
* Prohibit developers from implementing projects that have features of Developer Interest Bearing Scheme (DIBS), to prevent developers from incorporating interest rates on loans in house prices during the construction period.
* Financial institutions are prohibited from providing final funding for projects involved in the DIBS scheme. Malaysia's top three banks are Maybank, CIMB and Public Bank.

* To further increase access to home ownership at affordable prices, an estimated 223,000 units of new houses will be built by the government and the private sector in 2014.
* Government to allocate RM578 million to the National Housing Department (JPN) for low cost flats consisting of 16,473 housing units.
* Malaysian's government to provide 80,000 housing units with an allocation of RM1 billion under affordable housing scheme. The sales price of the houses will be 20% lower than market prices.
* Introduce the Private Affordable Ownership Housing Scheme (MyHome) to encourage the private sector to build more low and medium-cost houses. The scheme provides a subsidy of RM30,000 to the private developers for each unit built.
* Preference will be given to developers who build low and medium-cost houses in areas with high demand and limited to 10,000 units in 2014.
* The scheme is for housing projects approved effective from 1 January 2014 with an allocation of RM300 million.

* Government proposes a special tax relief of RM2,000 be given to taxpayers with a monthly income up to RM8,000 received in 2013.

* To implement goods and services tax (GST) on April 1, 2015 -17 months from now.
* GST rate fixed at 6%, the lowest among Asean countries.
* GST replaces current sales tax and service tax.
* Basic food items, transportation services, highway tolls, water and first 200 units of electricity for domestic users per month to be exempt from GST.
* Sale, purchase and rental of residential properties as well as selected financial services are exempted from GST.
* Najib: "The reality is that inflation now is low at around 2%. The government is confident this will be the best time to impose GST as inflation is minimal and under control."
* Training grant of RM100 million will be provided to businesses that send their employees for GST training in 2013 and 2014.
* Financial assistance amounting to RM150 million will be provided to small and medium enterprises for the purchase of accounting software in 2014 and 2015.

* Corporate income tax rate be reduced by 1 percentage from 25% to 24%.
* Income tax rate for small and medium companies will be reduced by 1 percentage point from 20% to 19% from the year of assessment 2016.

* Government to give one-off cash assistance of RM300 to low income group
* Personal income tax rates be reduced by 1 to 3 percentage points for all tax payers.
* Individual income tax structure will be reviewed
* Chargeable income subject to the maximum rate will be increased from exceeding RM100,000 to exceeding RM400,000.
* Current maximum tax rate at 26% to be reduced to 24%.
* Measures to be effective in 2015.

* Subsidy programme to be "gradually restructured".
* A portion of savings from restructuring to be distributed in the form of direct cash assistance with the other half to finance development projects.
* To abolish the sugar subsidy of 34 sen effective October 26, 2013.

* Committed to reducing the fiscal deficit gradually, with the aim of achieving a balanced budget by 2020.
* To ensure federal debt level will remain low and not exceed 55% of GDP.
* Government to conduct audits on projects valued at more than RM100 million during its implementation.

* Securities Commission to introduce the a framework for Social Responsible Investment (SRI) Sukuk, or Islamic bonds, to finance "sustainable and responsible" investment initiatives.

* Government to allocate RM6 billion allocated for agriculture programmes.
* Says to RM243 million allocated for rubber, palm oil and cocoa replanting as well as forest plantation programmes.

* Government to allocate RM3 billion in soft loans under the Maritime Development Fund through Bank Pembangunan Malaysia.
* The fund is to provide financing to encourage the development of the shipping industry, shipyard construction, oil and gas as well as maritime-related support activities.

* To replace existing air traffic control and management system in Subang, a new air traffic management centre costing RM700 million will be built at Kuala Lumpur International Airport (KLIA).
* Kota Kinabalu, Sandakan, Miri, Sibu and Mukah airports in Sabah and Sarawak to be upgraded with RM312 million allocation.

* Public investments to reach RM106 billion. Projects to be implemented include:
- A 316-kilometre West Coast Expressway. Locally listed Kumpulan Europlus Bhd owns 80% of the project, while IJM Corp owns the balance 20%.
- Double-tracking rail project along west coast Malaysia. The project is carried out by as a joint venture between MMC Corp and Gamuda.
- Various projects from state oil firm Petronas under its RM300 billion capex programme, including a petrochemicals plant in Johor.

* To carry out second phase of high-speed broadband project with the private sector involving RM1.8 billion investment. State-linked telco Telekom Malaysia is involved in the project.
* To increase Internet coverage in rural areas, 1,000 telecommunication transmission towers will be built in the next three years, with an investment of RM1.5 billion.
* To increase Internet access in Sabah and Sarawak, new underwater cables will be laid within three years at a cost of RM850 million. - Reuters, October 25, 2013.

Post Budget 2014: Tax Relief..

Emmm!!!  I didn't see any fair tax here.

What happen if in a family only husband working and the monthly income is at RM8500? Comparing to both wife and husband working?

What I see, Islamic Zakat is the fairest. 2.5%. 

So who will benefit?

* Government proposes a special tax relief of RM2,000 be given to taxpayers with a monthly income up to RM8,000 received in 2013.

* Corporate income tax rate be reduced by 1 percentage from 25% to 24%.
* Income tax rate for small and medium companies will be reduced by 1 percentage point from 20% to 19% from the year of assessment 2016.

* Government to give one-off cash assistance of RM300 to low income group
* Personal income tax rates be reduced by 1 to 3 percentage points for all tax payers.
* Individual income tax structure will be reviewed
* Chargeable income subject to the maximum rate will be increased from exceeding RM100,000 to exceeding RM400,000.
* Current maximum tax rate at 26% to be reduced to 24%.
* Measures to be effective in 2015.

Wednesday, October 23, 2013

How GST impat in our cost of living.... Year 2015 will start????

Aaahhhaaaaa! GST sooner or later will introduce and fortunately it is said in 2015 after a massive so called subsidy redrawal being implemented....  Just wait and see, this is award from elected ruler in PRU13. How will GST impact us? Do what as spell out in below article or catastrophic impact will rise??? I don't know. Do you know???

So lets celebrate...


From The Star..

Published: Monday October 21, 2013 MYT 12:00:00 AM
Updated: Monday October 21, 2013 MYT 9:22:58 AM

Real impact of GST on cost of living

WHEN most people hear of a possible introduction of the goods and services tax (GST) at say 6%, they assume that their cost of living will increase by 6%. This is an understandable assumption, but how true is it?
GST is a broad based consumption tax which will generally be applicable on all goods and services.
This means that we pay tax only on what we consume. To ensure the tax is only imposed once, any registered business charging GST will be allowed to offset the GST it pays against the tax it collects before remitting the balance to the government. This is known as an “input tax credit mechanism” – it generally allows businesses to operate with no tax cost. The final 6% tax is borne by the end consumer.
Recognising that this increased cost may be a burden to the consumer, the Government has proposed that certain essential goods such as unprocessed meat, cooking oil, and sugar will not be taxed. Also, education, healthcare, tolls, financial services and life insurance, will be exempt from GST.
So setting all this aside, will the cost of everything else rise by 6%?
Implementing GST
First, let’s consider how the current consumption tax regime works. Most will be familiar with service tax which is charged at 6% on selected services, for example those provided by hotels and restaurants.
A second consumption tax, possibly less familiar to many, is sales tax which is charged on certain manufactured or imported goods and is, in many instances paid before the goods reach the consumer. Sales tax is in some circumstances hidden from the consumer. For example a carbonated drink is subject to a sales tax of 10%, but the tax is not generally itemised to the end user. If the drink costs RM11, RM1 is tax. However, as far as the consumer is aware, he is buying a drink for RM11, not RM10 + tax.
The existence of two consumption tax systems can lead to a tax on tax. Consider for a moment the carbonated drink example. (see table 1)
Not only does the consumer pay an additional RM1.08 in tax under the current system, the hotel’s profit carries a 6% service tax on the sales tax charged by the manufacturer.
The problem of double taxation is addressed in GST through the input tax credit mechanism. The tax paid by the hotelier is recoverable as input tax credit and does not form part of the cost to him.
So did the carbonated drink become 6% more expensive? Under the current system, the drink costs the consumer RM14.58. Under GST, the drink will cost the consumer RM13.25, that is 9% (or RM1.33) less!
The example is a rather simplistic view and ignores the longer supply chain and the potential cascading effect of the embedded sales tax cost. Sales tax is paid once at the manufacturer/ import level, whereas GST will apply on the value added at each stage of the supply chain.
Another impact to be considered is that input tax credit will not be available for exempt supplies (like healthcare or education, in the table below). This means, while the consumer won’t have to pay a GST on these items, the final price they pay may still be higher than before. This is because the actual cost of making these exempt supplies may still increase due to the GST incurred on materials etc. The higher costs may be passed on to the consumer in the form of increased prices, albeit not by as much as 6%.
Therefore, we cannot expect to pay 9% less for drinks in fast food restaurants under GST. So what will we pay?
The Price Control and Anti-Profiteering Act 2010 makes it illegal for businesses to increase prices by 4% across the board with the introduction of GST (assuming GST is introduced at a rate of 4%) and any pricing decisions made by businesses must be justifiable otherwise stiff penalties may apply.
The Tax Review Panel in their presentation to the business community forecast that a 4% GST would potentially show a reduction of 0.10% in the consumer price index. They also provided an assessment of potential price changes on a range of goods and services based on an assumed GST rate of 4%. (see table 2)
As well as excluding specified basic necessities from the GST net, the Government has indicated that direct assistance will be given to lower income groups and changes to personal tax rates are also expected to reduce adverse price impact upon implementation of GST. The introduction of GST won’t automatically make everything more expensive. What it will do is change the way we pay tax and provide a more transparent, streamlined and fairer tax based on our consumption patterns.

Raja Kumaran and Tim Simpson are executive director and consultant of PwC Taxation Services, Malaysia respectively

Friday, October 18, 2013

Budget 2014 - Burden to Middle Class Worker will continue rising???

Quite sometimes  not visiting my own blog. After hospitalize and on medication for 2 weeks and later took 1 week leave to get mind rest now looking what will the next dooms to arise. Malaysia budget past years never benefit middle class worker especially private sectors.

Read the below article, tax is the most burden middle class worker since we usually will stuck at the higher tax band due to unbalance tax scheme between public and private sectors.

Public sector gain the most in the past years budget with many benefit given to them but vice versa for private sectors.  Now we need to sacrifice again to pay government debt that was utilized by corrupted to fund their crony debt. Middle class worker now suffering of higher interest rate to purchase house. The price of the house also now very expensive and middle class group also can't even purchase them. Where is justice? Paying higher tax to pay government debt and income become scarce for own consumption.

The 2014 budget will become next nightmare for us atprivate sectors. Leaches will sucks empty our blood... This is the resultant from PRU13.  Price hike for services and goods with GST / New Tax will cause more burden to us at private sectors.

So, what can we do now and next????

USA with Debt Default, and Malaysia also moving toward the same.... in-rational spending by the ruler for their own good will cause burden to us again and again... We are paying their debt... So who will pay our debt??? Good comment on US debt default in below video...



The Star: 18/10/2013.

BUDGET Day is a time when many people sit glued to their TV screens listening to the Finance Minister deliver his all-important speech, as they want to know whether they would be better off or worse off after the details are announced. In Malaysia’s case, Prime Minister Datuk Seri Najib Tun Razak also holds the Finance Minister portfolio.
Next Friday is Budget Day.
Since August this year, the Prime Minister has been requesting for public feedback on the impending budget via the #Bajet2014 campaign. He wants to hear the rakyat’s grouses and wish lists. Many have posted comments on what they would like to see being addressed on a variety of topics ranging from the cost of living and employment to education and social welfare.
Will all those who have expressed their views get their wish list?
One thing that many are expecting to be announced in his speech is the timeline for the implementation of the goods and services tax (GST). Yes, that has to come sooner than later since the Government needs to make fiscal reforms. The GST is expected to be effective come 2015.
At present, we pay a sales tax of 10% and 6% in service tax. In the future, the GST will replace the current narrow-based sales and service taxes. While a broad-based tax is one that applies to almost all purchases of goods and services, a narrow-based tax applies to fewer items.
It is estimated that a 5% GST rate would result in a net increase in tax revenue for the Government by up to RM8bil for the first two years.
The Government needs to reduce its budget deficit after global rating agency Fitch Ratings recently downgraded Malaysia’s sovereign rating outlook. While the reforms are necessary and the GST important, will it improve the Government’s financial position at the expense of the rakyat?
The introduction of the GST would normally mean a revision to the personal and corporate taxes.
But more pressing is the need to address the rising cost of living. The worst-hit segment is the middle-income earners, especially those who live in the urban centres. About 60% of total urban households earn RM4,999 or less, which is not enough to make ends meet in a big city like Kuala Lumpur.
To add fuel to the fire, the rising property prices make it difficult for many to own homes. Sadly, this group is not entitled to the Government’s financial assistance measures like the 1Malaysia People’s Aid programme or BR1M meant for the lower-income group, categorised as those with a household income of RM3,000 a month or less. This group is sandwiched between the rich and the poor, and is often said to be subsidising both the rich and the poor.
What hurts them the most, however, is the narrow tax band. They end up paying higher income taxes when they jump to upper tax bands, says a rating agency report.
It points out that if your chargeable income is about RM60,000, you pay 19% in personal taxes, as opposed to someone in Singapore who would pay 7% for a chargeable income of about S$80,000 or RM203,000.
Malaysia also has one of the highest tax rates in Asia, at 26%, imposed on those whose chargeable income is about RM100,000 per annum versus Singapore, where only those whose chargeable income is above S$320,000 (RM812,000) per annum fall in the top tax bracket.
To help reduce the burden of the rising cost of living, the Government should separate the combined relief for life insurance premium payments and Employees Provident Fund contributions from RM6,000 at present to RM3,000 and RM5,000, respectively, adds the report.
Among the rakyat’s wish list is that the Government should look into increasing the BR1M to help cushion the impact of the subsidy rationalisation.
Personal taxes for those aged 60 years and above should be abolished, and more affordable housing for those in the middle-income group should be provided.
Also, the rules for the entitlement of the tax relief on the medical expenses of parents should be relaxed.
Further, while there are enough roads that lead to almost everywhere now, the Government should focus on improving the quality of public transportation.
Although raising more money is vital for the Government, the rakyat’s wish list is that it keeps close tabs on its expenditure, do away with less-effective programmes such as the National Service and reduce wastage and plug leakages by tightening procurement.
And among all the things that the Prime Minister is going to announce next Friday, the one thing that he should avoid at all costs is to give his blessings to the idea of building the Malaysia-Sumatera bridge. That’s an idea that needs to be canned for good.

Business editor (news) B.K. Sidhu still feels prices for broadband access should be lowered to give more people access to faster speeds.