PRIME Minister Datuk Seri Najib Razak yesterday described the RM191.5 billion 2010 Budget he tabled in Parliament on Friday as a painless one.
On grouses about the RM50 service tax proposed for credit cards in the Budget, he said it should not be of concern since the government had cut personal
income tax by one per cent to 26 per cent and at the same time raised tax relief by RM1,000.
It means that taxpayers will enjoy a RM1,000 increase in disposable income from the 2010 year of assessment.
The Budget has been widely seen as a “people first” budget as Najib announced measures not only to lessen the people’s burden in the currently weak global
economic climate but also to make Malaysia a high-income nation.
The Budget is about a tenth less than the budget for 2009 but will cut Malaysia’s fiscal deficit to 5.6 per cent, a move economists said reflected the government’s responsibility to keep the country’s finances in good shape.