Tuesday, November 25, 2008

Safe less EPF, pay more TAX, You are now still poor and has no saving !

Full article on http://www.malaysiakini.com/news/93624

Da Mook: Let' assume your monthly basic salary is RM4,000.

If your monthly EPF contribution is 11% (RM440), then your taxable income = RM3560, and income tax payable = RM77.

If your monthly EPF contribution is 8% (RM320), then your taxable income = RM3, 680, and 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 Najib Abdul Razak said this measure was meant to boost the slowed down market, but from this example we see that the money does not go into the market.

Instead the money goes directly into the government's pocket through the greater amount of income tax that we will have to pay.

Obviously this measure does not help the market at all. Do we still want t...