Posted on 26 Oct 2015
Budget 2016 To Enable Malaysia Achieve Inclusive, Sustainable Growth
Budget 2016 will enable Malaysia to achieve an inclusive and sustainable growth, as well as building a competitive and progressive nation, said KPMG Tax Services Sdn Bhd Executive Director, Soh Lian Seng.
"There are certainly many challenges that Malaysia is facing now.
"It is hoped that the measures will not only help to sustain and strengthen the economy, but also to develop Malaysia more rapidly towards a developed nation status by 2020," he said in a statement.
Among the tax changes in the new budget are the expansion of zero-rated items under the Goods and Services Tax including controlled medicines and food items.
It also included tax relief for taxpayers whose spouse has no income and/or pays alimony to former wife; parental care; children below 18 years of age; and for children studying at tertiary level.
The government also proposed to increase personal tax rate from 25 per cent to 26 per cent for those individuals with chargeable income between RM600,000 and RM1 million.
Meanwhile, NS BlueScope Malaysia Sdn Bhd believes the budget will accelerate growth of the local steel sector in the long run.
This follows the government's initiative in accelerating infrastructure projects such as the RM11 billion Cyber City Centre and construction of the RM28 billion Mass Rapid Transit 2 Sungai Buloh-Serdang-Putrajaya.
The government also announced the RM18 billion Rapid Complex Project at Pengerang Johor, RM320 million Rubber City in Kedah and RM16.6 billion toll-free Pan Borneo Highway.
