Wuah, freebies.

So, it's everywhere. I'm quite glad on a few points made in Budget 2008.

• Single-tier tax system, effective from the year of assessment 2008. Under a single-tier tax system, profits are only taxed at the company’s level and dividends received are exempted from tax.
• Further reduction (by 1% only...) of the corporate tax to 25% in 2009.
• Commission rates for internet trading and cash upfront transactions will be fully negotiable. This measure will further reduce the cost of transactions. In addition, clearing fees will be reduced from 0.04% to 0.03%, with a maximum fee of RM1,000. The minimum broking charges per transaction is fixed at RM40.
• The examination fee for Sijil Tinggi Agama Malaysia and the annual fee for primary and secondary schools will be abolished.
• Beginning the 2008 school session, the Text Book Loan Scheme will be provided to all students, irrespective of their families’ income and with no restrictions on the number of eligible children.
• The Government also proposes that last mile network facilities providers be given Investment Allowance of 100% on capital expenditure incurred for broadband up to 31 December 2010; import duty and sales tax exemptions be given on broadband equipment and consumer access devices; and tax deduction be given to employers on benefits in kind in the form of new computers and payment of broadband subscription fees for employees. Such benefits in kind received by the employees will also be tax exempt.

Ok, end of freebies.

Here's the sucky part.

Beginning financial year 2008, public listed companies will be required to disclose their employment composition by race and gender, as well as programmes undertaken to develop domestic and Bumiputera vendors.

Real smart, while encouraging transparency, it indirectly forces Berhad companies to hire more ethnic Malays, and women. Ok, pretend you're a CEO at one big public listed company, would it make perfect sense to think like that, "Oh shxt, now must show out how many Malays in my company already, ok note to myself, send memo to HR after lunch to hire at least 30% Malays before year end. Later government don't like, 'blacklist' the company then sial lah. 30% enough, NEP target right?"

Effective September 2007, the Government will increase the COLA for students in the United States, United Kingdom and Canada by up to 97%, almost double the current rate.

I'm jealous. You increased another £400+ in allowance for gov-sponsored students in the UK! Arghh, means more money to spend on food, clothes, and booze loh..

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All in all, this budget has corely focused on corporations, and vernacular schools. If you don't believe me, you can just go and read the full budget report. Like the Opposition Leader puts it, this is truly an election budget. I can't help but feel like what he says could be true. Next year = GE. No rise in sin taxes, more freebies given to students, freebies given to the ethnic Chinese and Indian education sector, freebies given to corporations, freebies given to biotech and agriculture.

Biasalah. But remember, this happens almost every year. They have all been promised, but how well will they be implemented remains a separate issue..