In recent announcement by Malaysian government that contributors to EPF(Employees Provident Fund) are allowed to contribute 3% less than the usual mandatory amount until 2010.
The reasons given were:
1) To bring relief to household income.
2) To stimulate Malaysian’s declining economy due to global financial crisis.
The measure taken will perhaps contribute to relief and stimulation but who are the losers.
What had not been explained, as usual, to the unsuspecting contributors, was ‘the catch’.
We had indeed over-looked the implication of this government’s move until my daughter asked me, ‘will it increase her income tax’.
I am sure many were just as unsuspecting as me.
If our income is already in the taxable bracket, any amount that you get out of the 3% will be taxed at its maximum.
Now, do we still think our government is very caring and concerned on our well-being ?
Or they are just simply incompetent!
Clarification:
If your gross income is between Rm28K & Rm58K, and you do not have additional personal insurance for deduction, then you stand to lose out in this 'generous' move from government.
Apparently the target group is on young workers.
Vegee Plot continue....
Today, the 1st brinjal has reached the size of 120mm x 100mm, the purple colour has somehow faded. Perhaps it is being over matured.
A second brinjal had formed and the size is 100mm x 85 mm.
