Polaroid

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Malaysia is an emerging country with continuously grow in its economy. As announce in 2016 Malaysia budget, Malaysia government lists some objectives of the budget is to strengthening economic resilience by increase the capacity of domestic market and also increase exports. Promoting the well-being of nation by to be more prosperous and easing the cost of living of the people by giving subsidy and fair and equal tax also wealth distributions. A) Important issues in 2016 Malaysia budget There are a number of issues that being concerned in the 2016 Malaysia budget. By focusing to individual and Small and medium enterprises (SMEs), 2016 budget seems as the relief for Malaysian. Firstly, to encourage SMEs to expand their export…show more content…
This incentive will help the SMEs to face uncertainty during this three years’ time. For the individual, the 2016 budget really seen as a huge relief of the government to the people. With the intention of easing the cost of living and promote the well-being of the nation, the increases of tax relief for non-working spouse by RM 1000 from RM 3000 to RM 4000 is really good and it is also seen as appreciating the roles of spouse as the backbones of the family and also increases of tax relief for the each child that below 18 years of age from RM 1000 to RM 2000. With increasing of cost living and child expenditure for education, cloth and entertainment. This relief really meaningful especially for middle class income. In Malaysia, the middle class income is 40% of the total Malaysia population. The middle class income really affected by GST, most of the middle class work in government and the private sector. The CUEPACS and MTUC comments that the increase of tax relief help the civil servant and private worker to coup the cost of living. For those high income brackets are from RM 600,001 to RM 1 million and RM 1 million and above the income tax rate increase to 26% and 28% also 28% for fixed tax rate for non-resident. This new tax rate comes with different perceptions, government impose higher tax rates to a high income level in order to reduce the wealth gap between the citizen as well promote well-being of the nation.

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