Budget 2010

This is my take on the recently announced 2010 Budget:

1. EPF contributors can utilise both current and future savings under Account 2 and their take home pay to get higher mortgage. This move will certainly boost the purchasing power of house buyers. But it could also cause buyers to buy properties that they can't actually afford. Caution needed here.
2. RM50 service tax will be imposed on each principal credit card every year and RM25 for every supplementary card. I understand this as a move to curb over spending by credit card users. However, by imposing this, customers who actually use credit card for the convenience of not carrying cash is being victimized here. I would think having one card without the service tax will be better. Only additional card will be imposed with the RM50 service tax.
3. 5% Real Property Gain Tax (RPGT) will be imposed from sale of property regardless of year. This is a move I presume to curb speculation in property market. While it is good for the market, I do think prices of properties will be further inflated due to this tax. I would certainly hope disposal of property beyond the 5th year will not be taxed.
4. It came as a surprise that the government did not increase taxes for cigarette and alcohol drinks. In effort to promote better health and to reduce the budget deficit, this is certainly an avenue. I have to apologize to smokers, but some of them has certainly become a nuisance in our society. Just look at irresponsible drivers who throw their cigarette butts out of their car window at high speed. And look at food stalls where the premise's floor has become their ashtray.
   
5. All the exemptions for green technology certainly is a boost for the environment. I hope green technology will be mandatory in building specifications as an effort to save mother nature.