Main points of Budget 2016 revision


Later, Ministry of Finance Secretary-General Tan Sri Dr. Mohd Irwan Serigar Abdullah said the recalibrated Budget 2016 remains on track even if Brent crude oil prices were to deteriorate further to US$25 per barrel

Main points of Budget 2016 revision:

  • Revised Budget 2016 will enable the government to save RM9bil
  • Govt will maintain the Goods and Services Tax
  • Fiscal deficit target at 3.1% of GDP
  • Govt revenue to be based on Brent crude oil at US$30 to US$35 per barrel from US$48
  • Trimmed GDP growth outlook for 2016 to 4%-4.5% from 4%-5%
  • Govt debt to be reduced to 55% of GDP
  • Govt will not peg the ringgit
  • Govt to reduce EPF contributions for employees by 3% from March 2016 to December 2017, contributors from employers unchanged
  • Govt to give special tax relief of RM2,000 to individual tax payers earning RM8,000 a month for year of assessment 2015
  • Malaysia to restructure foreign labour system
  • Govt to give special tax exemption for some selected income groups
  • Govt to allocated RM5bil for the Higher Education Fund (PTPTN) 
  • Govt will liberalise the control on import quotas or approved permits for eight agricultural produce for temporary period. It includes raw coffee beans, buffalo meat, beef and mutton
  • To enhance the efficiency and amount of tax collection, govt will double compliance and auditing efforts on tax evaders
  • Govt to give special consideration on relaxation for penalty on taxpayers to encourage them to come forward and declare their past years’ income. The tax arrears must be settled before 31 December 2016.
  • For duty-free islands, to reduce leakages which resulted in revenue loss of nearly RM1bil, the government will restructure the selling channel of cigarettes and liquors limited to duty-free outlets licensed by the Royal Malaysian Customs Department (RMCD)
  • The free duty treatment on imported vehicles in duty-free islands will be tightened. 
  • However, the restructuring of sales on cigarettes, liquors and vehicles will not affect the tourists and locals who are residing in these duty-free islands
  • Govt will optimise the revenue from the telecommunication spectrum through a redistribution and bidding process which will be implemented soon


Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Business News

Southern Score Builders enters MoU to explore development of robotic construction tech
Malaysia urged to develop revenue strategy to boost low taxes - IMF
FBM KLCI continues downward path for fourth straight day
Alliance Bank, CGC allocate additional RM1bil under portfolio under portfolio guarantee schemes to help
Wong You Fong redesignated as non-independent director of Star Media Group
Ringgit trades higher against greenback ahead of key US wage report
IHH's strategic initiatives put it on growth path
Bursa starts on a rebound
Trading ideas: Kimlun, Velesto Energy, Citaglobal and SCIB
Global airlines group to boost focus on non-CO2 emissions

Others Also Read