Malaysia Budget 2013 Highlights

Budget 2013 Highlights

  • RM10,000 launching grants for private pre-school operators (nurseries and kindergartens)
  • Five-year tax holiday and building allowance for pre-school operators
  • Passport fees for senior citizens and children aged 12 and below be reduced by 50% from RM300 to RM150 (5 years) and RM100 to RM80 (2 years). Effective from January 2013. [Comment: Age threshold for senior citizens is not made known yet. Could it be citizen aged 55 and above?]
  • RM200 one-off rebate for purchase of one unit 3G smartphone from authorised dealers, for youths aged between 21 to 30 years with monthly income of RM3,000 or below.
  • All Malaysians with a monthly income of RM3,000 and below and who travel by KTM Komuter, will get 50% fare discount. Currently, only the disabled, retirees and students enjoy a 50% fare discount.
  • , Real Property Gain Tax (RPGT) be revised to 15% for disposal within 2 years, 10% for disposal within 2 to 5 years. After 5 years, not subject to RPGT. Currently, 10% for disposal within 2 years, 5% within 5 years, 0% after 5 years.
  • Bantuan Rakyat 1Malaysia (BR1M2.0) – RM250 assistance money for a household earning less than RM3,000. This is the 2nd cash assistance be given since its first last year. The criteria remains the same per last year’s. Existing BR1M recipients are not required to register for the 2nd time. RM250 will be paid effective Jan 2013. New applicant may register commencing Nov 2012 online or IRB offices, State Development Offices and District Offices.
  • In addition, RM250 BR1M assistance money is extended for single unmarried individuals aged 21 and above with monthly income not more than RM2,000.
  • Reduce sugar subsidy by 20 sen per kg from 29 Sept 2012.
  • Individual income tax rate to be reduced by 1 percentage point for the first RM50,000 of chargeable income
  • Child tax relief be increased from RM4,000 to RM6,000 per child for children aged 18 and above and receiving receiving full-time tertiary education.
  • Book voucher of RM250 for students
  • PTPTN loans: Incentive – repayment of full loan from 1 October 2012 until 30 September 2013, a discount of 20% will be given on their loan. Regular repayment gets a 10% discount.
  • My First Home Scheme income limit for individual loans raised from RM3,000 to RM5,000 per month.
  • Bonus of 1.5x month for public servants, Half month paid during 2012 Hari Raya. Remaining one month be paid in 50% in Dec 2012 and 50% in Jan 2013.