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Can’t wait for the 2008 budget this Friday? Well, if the experts are correct, here is what you can expect from the 2008 budget (compiled from multiple domestic news publication)

Personal Tax

• A cut in personal tax rate of 1% to 2% to boost consumer spending

• A raise of taxable income bracket and threshold

• An increase of spouse tax relief

• Tax relief for insurance premiums and EPF contributions to be separated.

Property

• Stamp duty exemption for the purchase of residential houses not costing more than RM250,000 on the condition that the S&P agreement is executed within a year.

• Relief on interest expense incurred on housing loans not exceeding RM250,000 for owner-occupied homes

• Allowing EPF contributors to withdraw from Account II for the purchase of residential houses provided the housing loan for the first property has been fully settled.

• Relaxation of rules to promote REITs — exempting resident and non-resident individuals from the 15% withholding tax on dividends and reducing the withholding tax for non-resident individual institutional investors from 20% to 10%.

• Providing tax credit and capital allowances for investment in highly energy-efficient building equipment and the purchase of energy-efficient equipment and solar energy systems

Automobile

• Introduction of National car-scrapping policy to drive the domestic automotive market - a voluntary scrapping of cars above 15 years and. A cash subsidy will be offered to those purchasing new Proton cars.

• Government would maintain fuel subsidy for another year to ensure the stability of oil prices and to keep inflation in check

Others

• Cigarette prices are likely to be raised and the government may even set a minimum price for tobacco-based products.

• Bonus of one to two months pays to the 1.1 million civil servants.

Let’s keep the fingers cross and hopefully, there will be a good Friday!