Budget 2014

8:49 AM

A few years back, I couldn't understand why any one would even bother anticipating the annual national budget. I find the reviews and analysis of the budget on TV a nuisance. My mindset at that time was

"I am a government servant. Whatever happens to the economy, I will still get paid."

I was totally wrong. I was ignorant. Even though I was in my late 20s, I had a "Everything is well" mindset. Have some extra cash....splurge on holidays. The business section in the newspapers are used as lapik punggung when on picnics. I spent almost RM 5000 a month on TV, holidays etc. once. I had no idea where all the money went.
Warren Buffet is the old dude that has lots of money, Donald Trump is the guy who FIRE people and has a bad hair do. Robert Kiyosaki is Robert who????
Money is meant to be spent, not to be saved!

 











Fortunately, now I have realized that the Budget has everything to do about me. As a citizen of Malaysia. My financial well being is dependent on the Budget. My future financial strategies will have to be based on the Budget.

My main concerns with the budget are:

The implementation of GST

    I have yet to fully understand how GST will work. From what I understand, you get taxed when you buy       things or use services. The more you buy, the more you pay. Mainstream news praise the GST as it can         help reduce the country's debt. It is beneficial, theoretically but is it applicable? "Facebook specialists"       has all kind of views, depending on their political views. However, I am worried on how it will effect my         life in 2014

  • Will prices of essentials increase? Even though price of diesel was raised by 20 sen per liter, price of a mug of teh tarik was raised by 20 sen also....a mug of teh tarik is LESS than 1 liter!
  • Who will monitor prices of goods?...such as teh tarik
  • Will my income tax be reduced as I will be paying taxes for my goods?
  • Will more people come to hospital and say "Saya sudah bayar cukai. Doktor kena beri kan layanan kepada saya dulu!".....since everyone will be paying taxes. Currently, only 1 million individuals are paying income tax.
RPGT
    The current Real Property Gain Tax is
       Disposal of property between 1 - 2 years:      15%
       Disposal of property between 3 - 5 years:      10%
       Disposal after 5 years:                                    0% 
     There are rumors that the tax might be double that of the current one.
  • Will there be less activity in sub-sale (2nd hand) property?
  • How will it effect property investors?
  • Will it really help reduce (cool down) prices of property?
Bonuses
     This is a hot issue. The private sector will say that government servants don't deserve bonuses of 1 or 2        months while they enjoy bonuses of up to FOUR months. I guess, TWO months bonus is better than            FOUR kot. FB specialist can say all they want. But who doesn't want a BONUS???

All we can do now is just wait. Pray the best. In the mean time Pakcik-pakcik boleh lepak kat kedai kopi sembang kosong pasal Bajet 2014.....yang muda skit slug it out on Facebook.




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3 comments

  1. This comment has been removed by the author.

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  2. Hi MO Frust,
    I enjoy reading your blog. This is the first time I am commenting.
    Disclaimer: I am pro-Pakatan viewpoint.

    I actually am open to the idea of GST in that it is able to capture a larger tax base. Why? Currently those "eligible" to pay income tax is only 2 million people. Imagine, only 10% of the population is paying income tax. No wonder there is no indignation from the people when there is corruption and government leakage. As evidenced by the Auditor-general's report, there was no concerted demand for accountability when those in power misuse public monies.

    With the enlarged tax base, I would hope to see a greater portion of the population to be more assertive in demanding accountability from the government.

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    Replies
    1. Thanx AnesthMO.I have never seen GST in your perspective. I give it 2 thumbs up! Maybe next time Malaysians will be more proactive in determining Malaysia's future. We tend to not appreciate free stuff

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