Stock Market Books

Friday, August 29, 2008

2009 budget highlights

29/8 Government will pay one month bonus to civil servants, minimum of RM1000 to be paid in 2 installments in September and December.

29/8 Government will reduce tax rate on dividends for REITs received by individuals reduced to 10% from 15%.

29/8 Government will reduce tax rate on dividends for REITs received by foreign institutional investors to from 20% to 10%.

29/8 No import duty and sales tax on solar photovoltaic system equipment, insulation materials, locally produced solar equipment, air-cons, fridges.

29/8 Government will provide tax exemption on fees received by domestic intermediaries who list foreign firms, foreign investment products on Bursa.

29/8 Government will reduces highest marginal income tax for individuals from 28% to 27% effective 2009. Marginal tax rate cut to 12% from 13 %.

29/8 Excise duty on cigarettes will be raised by 3 sen from 15 sen per stick to 18 sen. As such, duty for a 20-pack cigarettes will be increased by 60 sen.

29/8 RM 35 bil is allocated for between 2009 and 2014 to improve public transportation, including upgrading rail services, new tracks and more buses.

29/8 Tax exemption will be given to employees for interest subsidies on housing, motor vehicles and education loans up to a total of RM 300,000.

29/8 Government proposes venture capital companies that invest at least 30 % of funds in start-up, early stage, will get 5-year tax exemptions.

29/8 Government will cut toll charges by 50 % for buses, except border points, for 2 years from Sept 15. Government will compensate toll operators RM 45m yearly.

29/8 Road tax on private passenger vehicles with diesel engines will be the same as those with petrol engines from September 1 2008.

29/8 Interest income will be exempt from tax to reduce burden of those dependent on interest income from savings.
29/8 Travel allowance for commuting to work provided by companies will be given full tax deduction. Tax exemption for staff is allowed up to RM 2400 per year.

29/8 Eligibility criteria for welfare and based on household income, raised from RM 400 to RM 720 in peninsula, RM 830 in Sarawak and RM 960 in Sabah.

29/8 Government proposes tax rebate increase to RM 400 from RM 350 for those with taxable income of RM 35,000 and below.

29/8 Retired civil servants with 25 years service will get pensions of not less than RM
720 per month, effective Jan 1, 2009. 75,000 retirees will benefit from this scheme.

29/8 GDP will grow 5.4% next year, Services 6.9 %, manufacturing 4.3%, construction 3.1% agriculture 3.7 %, mining 3.4 %.

29/8 GDP will grow 5.7 % this year, Agriculture 5.7%, mining 3.6%, manufacturing 4.7%, construction 4%, services 7.1%.

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