Key Highlights of Budget 2012

Real Property Gains Tax

• - for properties held and disposed within two years, the RPGT rate is 10%. For properties held and disposed within a period exceeding two years and up to five years, the rate is 5%. Properties held and disposed after five years are not subject to RPGT.

Affordable housing

• - 1Malaysia People’s Housing (PR1MA) to develop housing in Government-owned land around Sungai Besi and Sungai Buloh. Areas in the vicinity of MRT, LRT and other public transport systems to be also identified for development.
• - My First Hime Scheme to be expanded. Limit of house prices increased from a maximum of RM220,000 to RM400,000.

Rising cost of living

• - To ease high cost of living, a once-off cash assistance of RM500 to be paid to households with a monthly income of RM3,000 and below.
• - Setting up more Kedai Rakyat, Agro Bazaars and extending Menu Rakyat 1Malaysia.

Social and Welfare

• - RM300 assistance for poor senior citizens per month, RM100 to RM450 for poor children and assistance and allowances of between RM150 and RM300 per month for the disabled.
• - National Legal Aid Foundation to ensure every person charged in court will be given free legal aid.
• - Tax exemption for contributions to registered primary and secondary schools, including national schools, national-type schools, mission schools and government-assisted religious schools.
• - Tax exemption for contributions to all registered places of worship.

Tourism

• - Langkawi Five-Year Tourism Development Master Plan to be launched with an allocation of RM420mil.

Taxi

• - 100% excise duty and sales tax exemptions on the purchase of new locally-made taxis.
• - Road tax abolished for all individually owned budget taxis.
• - Interest rate subsidy of 2% provided on a full loan to purchase new locally-made taxis.

Others

• 1. A new tax relief up to RM3,000 on contributions to Private Retirement Scheme and insurance annuity for 10 years.
• 2. Limit under My First Home Scheme increased from a maximum of RM220,000 to RM400,000.
• 3. Full exemption of import duty and excise duty on hybrid cars and electric cars to be extended until Dec 31, 2013.