YAB Dato' Sri Mohd Najib Tun Haji Abdul Razak, Prime Minister and Minister of Finance tabled the National Budget 2017 on Friday, the 21 October 2016 in Parliament.
The 2017 Budget’s theme of “Ensuring Unity and Economic Growth, Inclusive Prudent Spending, Wellbeing of the Rakyat (people)”
2017 Budget was anchored on five principles and philosophies of the government including giving priority to national integration in forming a nation state, preserving sovereignty, upholding the Constitution and laws as well as national security.
The budget proposed an allocation of RM 260.8 billion (an increase of 3.4% from the 2016 Budget Recalibration), of which RM214.8 billion would be for operating expenditure, and RM 46 billion for development expenditure. The total did not include contingencies amounting to RM 2 billion.
The revenue collection in 2017 is expected to expand at around 3% to RM219.7 billion.
The Government is expected to achieve the fiscal deficit target of 40.3 billion ringgit or 3% of GDP in 2017, compared with 3.1% this year.
Among the segments which will benefit greatly from the 2017 Budget are civil servants who now number 1.6 million people, 1Malaysia People’s Aid (BR1M) recipients, people in rural areas, fishermen, youths, taxi drivers, entrepreneurs and the second generation of settlers of the Federal Land Development Authority (FELDA); the Federal Land Consolidation and Rehabilitation Authority (FELCRA) & the Rubber Industry Smallholders Development Authority (RISDA).
To promote the development of SMEs, the Government will allocate a total of RM75 million to implement programmes under SME Master Plan. For export promotion programmes to local SMEs by MATRADE, MIDA and SME Corp, a sum of RM130 million will provided through National Export Promotion Funds. In addition, to boost export-oriented SMEs, the Government will provide 2% rebate on interest rates charged to SME borrowers under Syarikat Jaminan Pembiayaan Perniagaan (SJPP) scheme.
YAB Dato' Sri Mohd Najib said that “Through measures and initiatives implemented by the government, our economy records sustainable growth. According to the Purchasing Power Parity (PPP), Malaysia is now an upper middle-income country, surpassing many countries not only in Asia but also throughout the world”.
According to him, Malaysia PPP per capita had increased from US$23,100 in 2012 to US$26,891 in 2015.
Highlights of National Budget 2017:
(1) Review of Corporate Income Tax for Small and Medium Enterprises (SME).
(2) Reduction of Corporate Income Tax based on the Increase in Chargeable Income.
(3) Tax Relief for Lifestyle.
(4) Tax Relief for Fees Paid to Child Care Centres and Kindergartens.
(5) Tax Relief for the Purchase of Breastfeeding Equipment.
(6) Extension of Income Tax and Stamp Duty Exemption for Islamic Banking and Takaful Businesses.
(7) Extension of Stamp Duty Exemption for the Purchase of First Residential Home.
(8) Extension of Income Tax Incentives for New 4 and 5 Star Hotels.
(9) Expansion of the Scope of Halal Products Eligible for Incentives for Halal Industry Players.
(10) Increase in the Limit of Tax Deduction for Sponsoring Arts, Cultural and Heritage Activities.
(11) Extension of Tax Incentive for Anchor Companies under the Vendor Development Programme.
(12) Extension of the Period and Expansion of the Scope of Double Deduction Incentive for the Structured Internship Programme (SIP).
(13) Review of GST Relief for Disabled Persons.
(14) Review of GST Treatment in Free Zones.
(15) Review of GST Treatment under the Warehousing Scheme.
Please click HERE for List of Appendices.
Please click HERE for Touchpoints of National Budget2017.
Please click HERE for further information on National Budget 2017.