He who knows that enough is enough will always have enough.
– Lao Tzu, Chinese Taoist philosopher
Datuk Seri Anwar Ibrahim’s revised Budget 2023 of RM386.14 billion is the largest allocation in the country’s history, and is aimed at steering the economy and making it ‘less painful’ for the lower- and middle-income groups.
Some may call it a populist budget with the upcoming elections in six states in mind, the results of which will certainly have a tremendous impact on the unity government and the future direction of the country.
Others even term it as a ‘Robin Hood’ budget, taking away from the rich or rather the ultra-wealthy and redistributing the wealth to the ordinary people.
Say what you want, but to me Anwar has walked the talk. Budget 2023 stresses sustainability, innovation, prosperity, care, and above all compassion. What else do Malaysians want?
The Prime Minister seems to be targeting better off Malaysians to convince the lower- and middle-income groups that his government will make sure the pain is shared.
Sarawak will be getting RM5.6 billion, on top of the RM300 million special grants given by Putrajaya in January. Under Budget 2022 Sarawak received RM4.67 billion which means we are getting an additional RM930 million this year.
Of course we can argue that Sabah, a state smaller than Sarawak, is getting much attention from Putrajaya when it was allocated a bigger share of RM6.5 billion compared to RM5.16 billion in 2022. This is an increase of RM1.34 billion.
I still don’t understand why our neighbours have always been receiving higher allocations than us over the years. Anyway, let’s move on.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has thanked Anwar for the allocation, which will partly go towards upgrading the state’s dilapidated schools and clinics.
“I am grateful for the allocation even though the amount is not enough. The state government really wants to help the people.
“I have spoken to the Prime Minister about the state government’s plans to continue the development of road connectivity as well as water and electricity supply in Sarawak. I told him if the federal government would like to channel additional funds, it is very much welcomed.”
Nevertheless, Abang Johari is not one who will sit and wait for funds from Putrajaya to develop Sarawak. Even during Pakatan Harapan’s short administration of the country, the Premier used the state’s own funds to implement projects, including mega multi-million ringgit bridge projects.
He reaffirmed his commitment when he said: “We will continue our development projects and efforts with our own funds.”
Back to Budget 2023. Anwar’s concern for the middle class is seen through the two per cent cut in individual tax for the RM35,000 to RM100,000 income earners. Some 2.4 million taxpayers will get to enjoy an additional disposable income of up to RM1,300.
This means RM900 million less in the government’s personal income tax collection. But the government will raise the tax by between 0.5 percent and two percent for taxable income above RM100,000.
The unity government’s move to impose taxes on luxury goods like branded watches and fashion items, capital gains tax on unlisted shares, and a levy on nicotine products will help fund public healthcare service.
How will the luxury tax affect the rich? The luxury goods tax will only likely target those who don’t pay their fair share of taxes, says Datuk Seri Tiong King Sing, the Tourism, Arts and Culture Minister.
“From my understanding, the tax is only targeted at those with incredible wealth but pay next to nothing in taxes while enjoying the benefits of living in Malaysia.
“An example are those who pay their tax rates at the B40 level but have over 10 luxury cars. This is extremely unfair to the people, which is why the tax structure is being carefully developed…”
There are also fears that the proposed tax might cripple the country’s tourist shopping sector.
The luxury goods market is estimated to be around RM8.4 billion.
Anyway, it will depend on which products are defined as luxury goods and what the tax rate is like. The government has to consult the stakeholders before imposing the luxury tax.
While the measures against well-off Malaysians will please the poor, there is one group which I think have been left out.
Senior citizens are lamenting that they have been left in the cold again and there is nothing much to cheer about.
This group somehow is often neglected. The needs of the elderly are often ignored.
Why are there no tax incentives for firms to hire older people? And what about tax allocation for those looking after the elderly and the sick?
According to reports, Malaysia is an ageing society. The population of its senior citizens stand at 7.3 per cent now, and the country will be a super-aged society in 2056.
Hopefully, the unity government will consider some form of incentives outside Budget 2023 for these poor senior citizens.
Having said that, the Anwar Administration should be given the thumbs-up for doing a good job since it took over from the previous government. We just have to face reality that the government cannot please everyone.
The views expressed here are those of the columnist and do not necessarily represent the views of New Sarawak Tribune.
