Monday, October 27, 2014

Middle income squeezed more

Government has announced that those who earn RM5000 and less will enjoy the subsidised petrol price. Those who earns more than RM5000 but less than RM10,000 will enjoy partial subsidy and finally those earning more than RM10,000 will have no subsidy.

looks like we are the only country in the world implementing this. When you say those earns leas than 4k don't need to pay tax, but the major contributors are the middle income people towards the economy. Now they are being squeezed more.

What if I ask my tea lady or driver to pump petrol using his IC, will you give the full subsidised rate. Next, the income is based on salary or inclusive of allowance?

what if I'm doing business and my director salary is only RM5,000, but I have much profit.

Looks like 2015 going to be a screwed up year financially.

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