Prime Minister Datuk Seri Najib Razak, who is also Finance Minister, unveiled 2013 budgets in the Parliaments on Friday 28th September 2012. The Budget’s theme is “Prospering the Nation, Enhancing the Well-being of the Rakyat: A Promise Fulfilled.
The Budget was designed to improve the rakyat’s quality of life, ensure sustainable economic growth, spend prudently and reduce the fiscal deficit
The Government’s budget deficit estimated to improve to 4.0% next year compared with 4.5% in 2012. On top of that, the economic growth was projected to be between 4.5% and 5.5% for 2013, with this year’s growth expected at 4.5% to 5.0%.
The following are Budget 2013 highlights for Personal Finance and Investment.
|Increase in Real Property Gains Tax (RPGT). Tax will be 15%, if the property sell within 2 years, 10% between 2 to 5 years & nil for above 5 years.
|50 per cent stamp duty exemption is extended to 31st Dec 2014. Price limit on residential properties raised to RM400,000.
|Under My First Home Scheme, the income limit for an individual will be increased from RM3,000 to RM5,000 per month For joint between husband and wife, income limit raised from RM7,000 to RM10,000 per month The maximum property value was also raised to RM400,000
|80,000 houses will be built in key locations nationwide with selling price ranging between RM100,000 and RM400,000 per unit. Among the locations for the affordable houses are Kuala Lumpur, Shah Alam, Johor Baru, Seremban and Kuantan.
|RM1.9 billion to be allocated to build 123,000 affordable housing units in strategic locations, to be implemented by PR1MA, Syarikat Perumahan Nasional Bhd and Jabatan Perumahan Negara
|RM100 million to be allocated to Housing and Local Government Ministry to revive 30 abandoned housing projects, and tax incentives to private sector to encourage its involvement in reviving the projects.
|RM200 one-off cash rebate to buy smartphone for those aged between 21 to 30 with a monthly income of RM3,000.
|50% fare discount on KTM Komuter for those with monthly income of RM3,000 and below.
|Bantuan Rakyat 1Malaysia (BR1M). The RM250 cash assistance will be extended to single unmarried individuals aged 21 and above and earning not more than RM2,000 a month.
|1Malaysia Book Voucher to be increased from RM200 to RM250
|RM100 schooling assistance to 5.4 million primary and secondary students, to commence January 2013
|20 percent discount for those who make full PTPTN loan payment within a year effective from Oct 1, 2012 until Sept 30, 2013. 10 percent discount per annum will be given to those with consistent repayment.
|EPF & Retirement
|Minimum pension to be increased to RM820 from RM720 for those who had served for at least 25 years
|EPF contributors will be allowed to withdraw their savings in Account 2 to meet hajj cost, with a maximum withdrawal of up to RM3,000
|A one-off payment of RM1,000 to assist former members of the armed forces who have opted for early retirement, served less than 21 years.
|Individual income tax rate will be reduced by 1 percentage point for each grouped with an annual income between RM2,500 to RM50,000
|Existing tax relief on the children’s higher education amounting to RM4,000 per person to be increased to RM6,000
|Tax relief on savings in the National Education Savings Scheme will be increased from of RM3,000 to RM6,000
|RM350 million allocations to Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN) for small-scale entrepreneurs, including RM50 million to the Malaysian Indian community
|Additional one month bonus for civil servants, which will be disbursed in two payments in December 2012 and January 2013. A payment of RM500 will also be given to government retirees.