Highlights of Budget 2011 by S.L.NG TAX SERVICES SDN BHD

On 15 October 2010, our Finance Minister who is also our Prime Minister, Dato’ Sri Najib Razak has delivered the Budget 2011.

S.L.NG TAX SERVICES SDN BHD would like to highlight some of the key points of the Budget 2011.

ECONOMIC PROJECTIONS

• Growth rate for 2010 raised to 7% from 6%.
• Income per capita to rise by 6.1% to RM28,000.
• Private investment to expand by 12.5% to RM86 billion.

AGRICULTURE

• RM252 million for large-sclae integrated aquaculture zones in Sabah & Sarawak.
• RM135 million to move farmers into high-value activities, including swiftlet nest industry.

TOURISM

• RM85 million for infrastructuere facilities to facilitate building of hostels and resorts in remote area.

TAXES

• Abolishing import duty on 300 goods to promote Malaysia as a shopping haven.
• Exemption of sales tax on all mobile phones.
• Import duty and sales tax exemption on broadband equipment extended till 2012.

CREATIVITY & INNOVATION

• The rate of service tax to be increased from 5% to 6%. Sales value thresholds for such services are still retained.
• Service tax to be imposed on paid television broadcasting services.

BUMIPUTERA INTEREST

• RM1 billion syariah-compliant Bumiputera Property Trust Scheme by Bumiputera Property Trust Foundation (BTPF).

GREEN TECHNOLOGY

• Import duty and sales tax exemption on equipment for the generation of energy from renewable sources and energy efficiency extended till Dec 31, 2012.
• Tax exemption on income from trading of Certified Emission Reductions certificate to be extended until 2012.
• Import and excise duty exemption to franchise holder of hybrid and electric cars and motorcycles will be extended until Dec 31, 2011 with excise duty to be given full exemption.

WOMEN

• RM30 million for single Mother Skill Incubator Programme and Prime Entrepreneur and Women Activist Award.
• Flexibility to self-determine paid maternity leave from 60 days up to 90 days, subject to 300 days during tenure of service.

LESS FORTUNATE

• RM166 million for senior citizens.
• RM121 million for children’s assistance programme.
• RM218 million for disabled individuals.
• RM20 million electricity bill rebate to continue.

HOME OWNERSHIP

• RM568 million to build housing for low-income group.
• RM50 million to help estate workers get loans.
• My first House Scheme—Cagamas Bhd to provide guarantee on down payment of 10% for house below RM220,000.
• 50% stamp duty exemption for first-time house buyers.
• 50% rebate for loans agreement instruments for first-time house buyers.

For more detail information on Budget 2011, kindly contact us at +603 3342 2177 or email your enquiries to tax@slng2u.com