Monday, April 02, 2007

Of Taxes and More Taxes

It is that time of the year again when everybody is scrambling to file their tax returns and as usual, I don’t even know where my Borang BE is. I know I have received it some time ago but for the life of me I can’t recall what I did with it.

Never mind, I’m sure it’ll turn up later, possibly a day before the deadline, as always.

Honestly, I don’t see why I have to pay tax at all. With my meager income, I think, the government needs to give me money and not the other way around. There should be some form of assistance, much like the Unemployment Benefits in UK and US, but for people who actually do have jobs. Let’s call it the Employed But Barely Surviving Benefits (EBBSB).

Yes, I think EBBSB would be most welcomed. Particularly since I haven’t gotten any form of benefit from the government. Back in uni, while my friends were buying Guccis and Channels with their JPA money, I never even applied for scholarship, much less get one. So, nobody out there can ever accuse me of spending tax-payers’ money.

With a tinge of jealousy still subsisting after all these years against my friends who flashed their JPA money in front of my face back then, I would propose that EBBSB is made available only for the people who has never received any scholarship or student loan from any party, and who dutifully pays their credit card bills, car loans, housing loan and utilities by the 1st day of every month and is left with RM50.00 in their accounts to last them till 30th. Let’s give them enough money for food and supplies, petrol, the daily Starbucks, the designer jackets they have been wanting for so long and the occasional dinner at La Bodega.

Now, that would be helpful.

Instead, we get the Real Property Gains Tax (RPGT) abolishment. Like it’s going to ease my burden anytime soon. Bah! Humbug!

My foreign clients who are purchasing high-end residences around KLCC area are all happy about this piece of news. FIC approvals are no longer needed for purchase of residential properties by non-citizens, so they have been buying like mad since then, mostly for investments (almost 80% of purchasers for the high-end serviced residences around KLCC are foreigners). And now with RPGT abolished in toto, they are even more happy that they’re gonna make lots of money from future sale. (Previously, while locals enjoyed tax-free sale if they owned the property for more than 5 years, foreigners still have to pay at least 5% tax on the gains no matter how long they owned it).

We all know that property value in this area shoots up rapidly, and those with a million ringgit to invest will get millions of ringgit in return. And with no tax payable, this is heaven on a platter! Too bad the ordinary Ahmad, Muthu and Ah Chong (and also Sue) don’t get anything from this.

I’m also miffed, like a lot of people out there, for one other reason, I feel cheated for not having the opportunity to exercise my RPGT exemption option. Previously, for every Income Tax account holder, there is an option exercisable once in their lifetime for an RPGT exemption. Meaning, for a sale of a property, if the gains are taxable, the seller can opt for a tax-exemption. Since this exemption is a once in a lifetime thing, many people chose to ‘save’ their option till the most opportune moment. They won’t exercise it if the gains are a meager RM15,000.00 and instead look forward to such time in the future when they manage to purchase a RM1 Million property and sell it for RM2 Million.

That was my plan. And that has been thwarted big time.

I remember one of my clients, who gleefully told me that he doesn’t mind paying the RM20K RPGT he had to fork out then because he was planning to exercise the option on the future sale of another property he just bought in which he is eyeing a RM5 Mil profit. I don’t think he got around to selling the property yet. Must be banging his head against the wall now - he should’ve used it on the previous sale and save that RM20K!

Such is the reality in our lives now. The rich gets all sorts of perks, and the poor like me has to skip lunch in order to pay tax.

All the more reason to have the aforementioned Employed But Barely Surviving Benefits. For those of you who are not eligible for the EBBSB for any reason whatsoever, don’t be jealous lah. This is my wishful thinking, so you go create your own okay!


elviza said...

Dear Sue,

Gosh, its that time again isn't it? Pleaseeeee.... I cant stand LHDN. Been paying too much money already!

A Babe Of Very Little Brain said...

all talk about taxes gives me constipation. eh no, diarrhea.

*shreds borang BE*

Clark Gable of Pulau Duyong said...

Dear Sue,
Am all in support of EEESB.
If you come across the application form , kindly fwd it to me.

Dear ThyphoonSue,
Just out of curiousity,yesterday downpour which caused massive jam ,was it your doing?? If you are capable of such calamity,please do that on all LHDM offices in Malaysia.
There is one in Kelana Jaya, you were quite close yesterday!!

NJ said...

Hmm… That EBBSB sounds good indeed. Ok once you got this scheme approved by the govt, I would like to piggy ride you to lobby for another scheme called ESBBSB (Employed-Scholars-But-Barely-Surviving-Benefits) for ex-sponsored students hehehe.

Typhoon Sue said...

ya..ya... my sentiment exactly

babe: shred and you go 'chretttt'....

clark gable:
unfortunately, that wasn't me, but if I'm not mistaken it's a cousin from my father's side, twice removed.

I got a feeling this thing's gonna be pretty popular if it takes off, with you and me heading the list of applicants for the respective scheme..