On the upcoming national budget

On August 11, Prime Minister Datuk Seri Najib Razak opened up suggestions on the contents for the 2015 national budget to be submitted to him. So, perhaps it is time for us to discuss just where the country can tighten its belt, and where it has to push the most amount of money.

This, of course, must be done entirely through avoiding the semblance of any form of a pork barrel buffet for those in power, which is perhaps the hardest thing for the prime minister to deal with.

The government as we know it is now a smorgasbord of parties, all of which will be looking longingly at this dole out similar to vultures to a fresh would be carcass.

I am just giving broad strokes of what needs to be done this year, and not going into much detail.

Firstly, since there is a fear of the taste of food being brought down by foreign workers, then it is perhaps imperative that we stop these from getting any form of tax breaks. Thus, any company other than the plantation and construction sectors hiring 30% or more foreign workers will not be legible for any form of tax deduction.

While it is respectable to stand up for other nations, we must make sure that we do not forget to give priority to stand up for the Malaysian people. As such, the minimum wage policy needs to be brought up to a standard worthy of coping with the cost of living to RM1,500 or RM7.20 an hour.

We need to learn to make do with our own citizens instead of relying on foreign labour. It is time everyone faces these facts, including the securities and manufacturing sector.

Secondly, we need to assist single parents with children. Therefore, those who are registered with the Welfare Department should receive a RM200 one-time cash pay-out over and above the Bantuan Rakyat 1Malaysia (BR1M) program.

Speaking of which, the BR1M should once again be dished out in two stages, totalling RM8,000 for families with an additional RM100 per child earning below RM4,000 a month and RM2,000 for single Malaysians earning below RM1,800 a month as well as unemployed. For those who are unemployed, they must register with a new department under the Human Resources Ministry which will assist them in getting job placements in their respective field.

Moving on, tax rebates should be reintroduced for the following; gym memberships, gym equipment, fitness equipment, exercise equipment and broadband services. This applies to both individuals as well as companies. For individuals, this rebate should be limited to RM1,500, while companies should be able to apply for a rebate of RM10,000.

Since cleaning up Kuala Lumpur has become an issue and the government needs assistance with the poverty stricken, homeless population in the city, the government should introduce tax rebates for corporate social responsibility initiatives to assist soup kitchens and housing for the companies involved only in Kuala Lumpur.

The government should also invest in further infrastructure and capital expenditure to better public transport. As such, perhaps the allocation of a RM80 billion fund is required for this initial move forward.

In addition to this, families which have only one parent working but employ a maid will not be legible for any form of tax rebates or deductions. As I said, less reliance on foreign workers.

To further encourage the people’s move to rely on public transport, the government should introduce off peak prices for both bus and rail transports in exchange for rebates as well as the extension of running hours for both from ending at midnight to 2am daily.

For the civil service, there should be a hike for both housing allowances and also the cost of living allowance (Cola) to RM500 a month, particularly for teachers based out of their state of origin as stated on their identity cards. On top of this, teachers should also be granted Bantuan Buku 1Malaysia (BB1M) book coupons similar to those given to university students, totalling RM200 each.

To offset this spending, there will be a need for the government to increase income. While unpopular, it is definitely necessary. Therefore, the government should introduce the total removal of the petrol subsidy as well as a gas and petrol tax with a separately controlled rate as that of the goods and sales tax (GST).

This is to allow the government control over the fluctuation of crude oil prices internationally.

Furthermore, the government should introduce a new tax bracket for individuals earning equal and more than RM400,000 annually with an initial rate 26%. Similarly, individual taxes will be reduced by 2 per cent for income brackets under RM100,000 annually to ensure that the cost of living hike is still manageable for most Malaysians.

The offsets of costs and income through these suggestions should allow the government to make it worthwhile to develop better infrastructure while ensuring that the proper people receive the assistance instead of a total bailout. – September 9, 2014.

*This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.