Below are recap from Budget 2011 announced by our PM last year that would directly impact to us.

Service Tax

• Service Tax increased from 5% to 6% effective Jan 1, 2011.
• Service tax of 6% to be imposed on paid TV broadcasting services from Jan 1, 2011. The tax is to be charged on the monthly subscription fees. Subscribers of satellite TV provider Astro are likely to feel the impact.

Stamp Duty

• Stamp duty exemption of 50% for transfer of property priced RM350,000 and below. Exemption applies to first-time buyers who are citizens, and can be claimed only once during the exemption period of Jan 1, 2011 to Dec 31, 2012.
• Stamp duty exemption of 50% to be given on loan agreements for residential property priced RM350,000 and below. The exemption is also for first-time owners.

Personal Tax

• Tax relief of RM5,000 claimable by individuals on medical expenses now extended to include expenses for the care for parents who suffer from diseases or have physical or mental disabilities and who need regular treatment certified by qualified medical practitioner. Such treatment and care provided include treatment and care at home, daycare centres or homecare centres. It is effective from year of assessment 2011.

Home Ownership

• Introduction of Skim Rumah Pertamaku through Cagamas Bhd to provide a guarantee on down payments of 10% for houses below RM220,000. The scheme is for first-time house buyers with household incomes of less than RM3,000 per month.

Private Pension

• Government will launch Private Pension Fund in 2011, which will benefit private sector employees and the self-employed. The existing income tax relief of up to Rm6,000 for employee contributions of EPF will be extended to contribution made to the Private Pension Fund.

Mobile Phones

• Exemption of sales tax of 10% for all mobile phones with effect from 4pm, Oct 15, 2010.

Electricity Bills

• An allocation of RM150 million to continue providing rebates on monthly electricity bills below RM20 to ease burden of low-income group.

Civil Servants

• Special financial assistance of RM500 for civil servants to cope with schooling expenses to be paid in December 2010. The assistance will be provided to all civil servants at Grade 54 and below.
• An increase in the rate for funeral arrangement assistance to RM3,000 from Rm1,000, in line with rising funeral expenses. The assistance is extended to retired civil servants.
• Raise the maximum loan eligibility to RM450,000, compared with RM360,00 currently.

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