19/10/2024
The newly tabled National Budget 2025 presented by our PM yesterday...what's your thought?
Frankly, I'm always fascinated and curious about the choice of briefcase used on the day or shall I say, the goodie bag...Hence, i have taken a screenshot of the bag in this photo too...lol
The one used this year, is in fact a piece of woven songket art created by local designer, Adiguru Rasiah Yusoff, from Kelantan.
Back to the goodies for 2025, these caught my attention. What's yours?
Private Retirement Scheme
- extended to 2030
- enjoy individual tax relief up to RM3,000 for yearly contributions
- further secure our retirement life
Tax on dividend income
- 2% tax on dividends of over RM100,000 (except from EPF, overseas dividend income) received by individual shareholders.
Johor Forest City designated as Duty-Free zone
- among the first of many incentives to turn the place back to "live"
- Yay, now I have more excuses to go JB, besides visiting my favourite Johor Premium Outlet!
Increased tax relief for individuals
- Education insurance and medical insurance premium payments increased from RM3,000 to RM4,000 respectively.
- Deeper scope for personal medical expenses up to RM10,000 (also covers the portion of medical payments made under medical, health insurance and takaful products with co-payment features)
- RM1,000 limit for personal health checks, expanded to include others such as blood test, ultrasound, mammogram, pap smear, and self-testing medical devices such as glucometer, blood pressure monitor.
Housing tax relief (first-home buyer)
- Tax relief of up to RM7,000 for the purchase of residential properties priced up to RM500,000 to encourage first-time home ownership.
- However for residential properties priced between RM500,000 and RM750,000, Tax relief is only up to RM5,000.
- The relief can be claimed for three consecutive assessment years on S&P agreements done between January 1, 2025, and December 31, 2027.
- Also there will be a substantial RM12.8bil in government guarantees approved by the Housing Credit Guarantee Scheme (SJKP) for over 57,000 first-time home buyers.
Tax on Foreign Income by individual
- Exemption extended until 31 December 2036!
SSPN education savings
- Tax relief on net savings in Skim Simpanan Pendidikan Nasional (SSPN) savings scheme extended for three more years until 2027.
Pay more for sugar
- Excise duty on sugar-sweetened beverages increased by 40 sen per litre from 2025 in stages. Currently is 50sen per litre.
- Take less sugar, improve health!
RON95 Petrol subsidy
- subsidy to be retained for up to 85% of population
- high-income group's subsidy to be withdrawn
- rationalisation target to start mid 2025
Electricity subsidy
- Power users (over 600KW hours) pays more. The rest status quo.
Minimum wage
- To be raised to RM1,700 from February 1, 2025. But if your employer has fewer than 5 workers, only starts August 1, 2025 instead.
SST (Sales & Services Tax)
- Scope to be expanded progressively from May 2025.
- Food and essential items remain excluded
- More pain on our wallets likely! 😱
Increase sales tax on imported Premium item
- such as Avocado and Sashimi!
(Oh no, there goes my favourite Japanese food!)
Of course, the list above is not exhaustive. Best to consult your tax expert for the full details.
Which one you reckon benefits you the most?
Cheers for a better 2025!
#有理財快乐
