Budget 2022: tax exemptions everywhere, as far as the eye can see

KUALA LUMPUR – Malaysians across the board will enjoy a slew of tax exemptions under Budget 2022 – including devices, tourism, automotives and housing.

As part of the government’s efforts to increase consumer spending power, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said the Employees Provident Fund extended its minimum contribution period for workers from 11% to 9% till June next year.

Individuals will continue to see a tax deductible of RM2,500 on the purchase of mobile phones, computers, and tablets.

Putrajaya has also opted not to implement real property gains tax on any properties disposed of by Malaysians, as well as permanent residents from year six and above.

On the B40 group’s difficulties in purchasing their own homes, the government will continue with affordable housing projects involving a total value of RM1.5 billion.

Tengku Zafrul said the plight of gig workers, small-time entrepreneurs, and farmers in purchasing a home has not gone unacknowledged.

“Some of them have the capacity to pay their housing loans, but they have no evidence of a fixed income.

“For next year, to help this group purchase a house, the government will have a RM2 billion guarantee for banks under the Housing Credit Guarantee Scheme to give financial access so this group can purchase a house.”

Tax exempted for domestic tourism

Another sector that the government is trying to reinvigorate is domestic tourism.

The finance minister said it is critical for Malaysians to enjoy local tourism destinations such as Perlis’ Bukit Ayer Eko-Rimba Park, the historical sites in Melaka, and Teluk Cempedak Beach in Pahang, among others.

“Individual income tax will see up to RM1,000 in exemptions for domestic tourism, which will be extended to the 2022 assessment year,” said Tengku Zafrul.

In order to promote the usage of electric vehicles (EVs), Putrajaya plans on granting full exemptions for import duties, excise duties, and sales duties.

An exemption of 100% for the road tax of such vehicles will also be implemented.

“Furthermore, individual income tax exemptions of up to RM2,500 will be granted for the cost of purchasing, renting, and hire-purchase facilities, as well as maintenance fee services on EV charges.”

Similarly, the government will grant a 100% sales tax exemption on completely knocked-down passenger vehicles, and 50% on completely built-up ones including MPVs and SUVs for six months up till June 30, 2022. – The Vibes, October 29, 2021