Budget 2010

The Prime Minister Datuk Seri Najib Tun Razak has just finished his Budget 2010 speech. The following are the points / areas that affect me and my family...and maybe you :)

Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012.
Tax of 5% to be imposed on gains from the disposal of real property from Jan 1, 2010. Existing tax exemption will be retained for gifts between parent-child, husband-wife, grandparent-grandchild.
My Say : This is a good move by the government to get a share from the profits / gains from property players / speculators. I hope in a way it will be able to control the rising of property prices due to manipulation / speculation by certain group of people. eg. the developer and the gang.
A service charge of RM50 a year to be imposed on each principal credit card and charge card; and RM25 a year on each supplementary card, effective from Jan 1, 2010.

My Say : This is good to control overspending by those who do not know how to manage their credit / money. For me and hubby, it looks like we have to get rid / cancel 4 - 5 cards which we keep for emergency use. So bye bye to Hong Kong Bank, Citibank, Public Bank, Maybank, Ambank, Alliance Bank, RHB Bank credit cards...

The maximum income tax rate for individuals to be reduced to 26% from assessment year 2010. Personal relief increased to RM9,000.
To promote house ownership, Govt will launch a scheme that enables EPF contributors to utilise current and future savings in Account 2.

My Say : can not wait to get the details from EPF

Employees' EPF contribution to be increased to 11% again, on a voluntary basis, effective immediately. However, from Jan 1, 2011 employees' EPF contribution will revert to 11%.

My Say : My hubby did not opt for the lower contribution as it increased his tax liability.

Personal relief for EPF and life insurance schemes to be increased to RM7,000. But...the increase is for relief on annuity premiums paid from Jan 1, 2010 for retirement schemes offered by insurance companies.