I got this from my friend, and it really makes sense, apart from to boost consumers spending, it makes government richer from the additional income tax. ‘Smart’. This is kill 2 birds with 1 stone…
“Assume monthly basic salary is RM4000.
- If your monthly EPF contribution is 11% ( RM440 ), taxable income = RM3560, income tax payable = RM77.
- If your monthly EPF contribution is 8% ( RM320 ), taxable income = RM3680, income tax payable = RM109.
Conclusion :
if you choose to contribute 8%, you will end up paying more income tax to the government, which will make the government richer. Finance Minister, Dato Seri Najib Tun Razak said this measure is meant to boost up the slow-down market, but from this example wee see that the money does not go into the market. Instead the money goes direct into the government through the greater amount of income tax that we will have to pay every month. Obviously this measure does not seem to help the market at all. “