Budget Wish List
Today, the PM who’s also the Finance Minister will be presenting the Budget 2006. It’s indeed an important exercise not only to shape Govt fiscal policies but also to inform the tax payer, where his or her hard earned money will be channel to. (On paper at least, coz I dont think they put those extravagant retirement parties or golfing trips in the budget)
This year the budget is getting more scrutiny from the public than usual as this has been a year that has been infested with rising oil prices, higher inflation rate, unemployment of fresh grads etc. I’ll be stuck at office and will surely miss the proceedings, but this is a few of my wish list (more like wishful thinking )
1. No more higher fuel prices.
I think the consumers have been burdened with the increase of fuel prices already. Many people have to sort to taking public transport, car pooling, skipping lunch etc. The biggest challenge for our govt is to counter this. With oil pricing reaching record prices in the United States, perhaps a rise is inevitable but as a tax payer, I’d like to know how much subsidy was the govt paying then and how much is it payaing now. Is the difference in the fuel prices is being borne solely by the consumers or shared between govt & consumers? If it’s being shared, I surely would like to know the percentage of sharing then and now…but I don’t think the govt is ready to be that transparent yet ( although I personally feel the current leadership is probably the most transparent yet) therefore I suspect it might be a rise in fuel prices again (can’t blame you on this Pak lah) but for goodness sake, make it extremely minimal. With the increase in fuel prices, guess what folks, all the prices which has direct link or no link at all will also go up. A higher inflation I suspect,maybe beyond 5%.
2. Reduce Income Taxes
I really wish the govt reduce income taxes, seriously, if fuel prices are going to go up and inflation is going to be high, please reduce our income taxes. Honestly, paying a few thousands might seem miniscule compared to the whole budget itself, but it hurts consumers like me a lot. For those of my friends, who do not need to pay their taxes (like my fellow friends who are still studying),might not understand the predicament that we feel. It’s just not about paying taxes per se, but when you hear some govt officers make farewell parties, make obscenely expensive purchases, it hurts you to the bone. So please, reduce the income taxes, its only fair.
3. SIN TAXES
As much as I am surrounded by people who are taxed for their "unhealthy" lifestyle, like cigarettes and alcohol, I think yeah why not, increase those bloody taxes on them. Especially, if it means that income taxes will be lowered. I’m being extremely self serving here and I’m not ashamed by it. As much as in principal, I think it is grossly unfair to tax people who smoke and consume alcohol, but between maintaining or rising income taxes and sin taxes, I say sin taxes. A lesser evil deed it will be !
4. Others
I would like to see lesser taxes on books and other reading materials. Books are very expensive here compared to a few neighbouring countries. If we are indeed going to inculcate a reading society, than the books have to be affordable to the society.
A reduce in car insurance premium is the best way to off set the rise of fuel prices. I commend and laud the govt’s initiative of reducing road tax but road tax is a small figure compared to the annual insurance premium that you pay.
That’s all friends, budget wish list from a seasoned tax payer.
September 30th, 2005 at 1:41 am
There was a recent report in one of the dailies about the fuel prices and how much the government subsidises it. The calculation was something like this; the market price per litre, the cost of transporting the fuel and other related cost, the profit margin by the fuel station and then the duty by the government. The subsidy is calculated based on this, where the bulk of it is the tax the government was imposing!! Actually, the subsidy per litre is quite marginal! The billions quoted is basically the taxation that is not collected plus some amount of subsidy. Anyway, this would never have been revealed under the crammy rule of the previous premier, so kudos to the current administration for sharing this.