Monday, October 18, 2010

Highlights of Budget 2010/2011

* Government will not raise toll rates for PLUS-owned highways for next 5 years with immediate effect.

* To review existing service tax rates and to generate additional tax revenue for national development, the government proposed the rate on all taxable services to be increased from 5% to 6%, effective Jan 1, 2011

* To widen the tax base, then government proposed that service tax of 6% be imposed on paid television broadcasting services. This service tax is charged on the monthly subscription fees on paid TV broadcasting services with effect from Jan 1, 2011.

* The government has proposed to scrap the sales tax of 10% sales tax on all types of mobile phones, effective Oct 15, 2010, including personal digital assistants (PDAs).

* Mass Rapid Transit in Greater KL to be implemented in 2011, estimated private sector investment is RM40 billion and to be completed by 2020. Upon completion, the utilization rate of public transport is expected to increase to at least 40%.

* Proposed stamp duty exemption of 50% be given on instruments of transfer of residential properties, not exceeding RM350,000 from Jan 1, 2011. S&P must be executed between Jan 1, 2011 to Dec 31, 2012. Residential property includes terrace houses, condominiums, apartments or flats.

* Stamp duty exemption of 50% be given on loan agreements for residential property priced not exceeding RM350,000.

* Permodalan Nasional Bhd to undertake integrated development of the Warisan Merdeka which will include a 100-storey tower costing RM5 billion. The tower will be completed in 2015. The project will retain Merdeka Stadium and Stadium Negara.

* The EPF to undertake development of the RM10 billion Sungai Buloh project at the current Malaysian Rubber Board land covering an area of 2,680 acres.

* Government to launch private pension fund in 2011 which will benefit private sector employees and the self employed.

* Government is allocating RM857 million for local companies to invest in high value-added activities, particularly in Penang and the Kulim High-tech Park in Kedah.

* GLICs be allowed to increase their investments overseas. EPF will be allowed to increase the investments from 7% now to 20%.

* Securities Commission to offer 3 new stockbroking licences to eligible local, foreign, or JV companies

* Government to allocate RM146 million to support oil, gas energy sector, expand downstream.

* Proposed private investment of RM6 billion in oilfield services, equipment centre in Johor.

* Petronas plans a RM3 billion regasification project in Malacca, to be operational by 2012.

* Government allocates RM150 million to provide rebates on monthly electricity bills below RM20.

Hmm...I'm not sure what is the 100 storey building for? Do we really need such ego and fame for the tallest building ???

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