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PUTRAJAYA: Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz (centre) with the Budget 2022 proposals as he leaves the Finance Ministry building and heads to Parliament. With him is Deputy Minister 1 Mohd Shahar Abdullah, Deputy Minister II TYamani Hafez Musa (right). -fotoBERNAMA (2021) Federal Govt Budget 2022 proposals involves allocation of RM332.1bil, largest ever for the country, exceeds Budget 2021's allocation of RM322.54bil.This involves RM233.5bil in administrative expenses, RM75.6bil in development, RM23bil for the Covid-19 fund and RM2bil for unexpected expenses.RM2bil is provided as contingency savings.Fiscal deficit for 2022 is projected to shrink to 6% of GDP from 6.5% in 2021.The budget’s amount, equivalent to 20.3% of the gross domestic product (GDP), is nearly 3% larger than the RM322.5bil announced for Budget 2021.This can be implemented based on an estimated increase in government revenue for 2022 to RM234bil.Of the budget allocation, 70.3% or RM233.5bil is for operating expenditure (OE), followed by RM75.6bil (22.8%) for development expenditure (DE) and the balance of RM23bil for the Covid-19 Fund.Excise duty imposed on nicotine-based gel or liquid products for vapes and electronic cigarettes.Govt to expand the tax break until RM4,000 for voluntary contributions to EPF include self-employed and gig sectorWindfall profit tax threshold price for planters increased to RM3,000 per tonne from RM2,500 per tonneGovt plans expand the excise duties to sweetened drinks uin the form of premixed with chocolate or cocoa, malt, coffee and teaRM4.8bil allocation to implement programmes to raise capacity and finance business projects under Perbadanan Usahawan Nasional Berhad, TEKUN Nasional and Dana Kemakmuran Bumiputera.A total of 600,000 undergraduates from B40 families to get one tablet each involving an allocation of RM450mil.Special tax relief of up to RM2,500 for the purchase of mobile phones, computers and tablets until Dec 31, 2022.Discounts for PTPTN loan repayments of between 10 and 15 per cent from Nov 1, 2021, until April 30, 2022.RM6.6 billion to strengthen the Technical and Vocational Education and Training (TVET) field.600,000 jobs to be made available with an allocation of RM4.8 billion under the Jamin Kerja Keluarga Malaysia (JaminKerja) initiative.An incentive of 20 to 30 per cent from monthly salary to employers who hire those who are not actively working.An incentive of 30 to 40% from monthly salary of RM1,200 to employers who hire persons with disabilities (PwDs), Orang Asli and prisoners.MySTEP to offer 80,000 jobs in the public sector and GLCs from January 2022.RM1.1 billion for training and upskilling programmes, to benefit 220,000 trainees.Tax exemption increased to RM2,000 for expenses incurred in attending upskilling courses.More than 810,000 self-employed workers to benefit from extended protection under SOCSORM80 million to help housewives and widows in EPF and SOCSO contributions under Program Kasih Suri Keluarga MalaysiaGovt providing an additional RM4bil, specifically to the Ministry of Health (MOH), to continue fight aganst Covid-19.To spur the retail industry, the government allocated RM33mil towards “buy local” shopping campaigns.The allocation will be channeled to the Buy Malaysian Products Campaign, Mega Sales Programme and the Khazanah Alam Industri direct selling programme.A total of RM1.6bil has been allocated for the tourism industry under Budget 2022. Seven key initiatives, will be implemented next year to revive the tourism sector which has been badly affected by the Covid-19 pandemic.They included a Wage Subsidy Programme, which specifically targeted tourism operators whose income dropped by at least 30 per cent.Meanwhile, RM3.5bil infra development projects for Pan Borneo and Central Spine RoadUnder the environment and biodiversity projects, the government is setting aside RM450mil for various ministries to implement these projects.The Govt will allocate RM35mil for oil palm replanting and RM20mil for efforts to address anti-palm oil campaign internationallyThe government will increase the threshold of oil palm windfall profits for Peninsular Malaysia to RM3,000 per tonne from RM2,500 per tonne and for Sabah and Sarawak from RM3,000 a tonne to RM3,500 per tonne.The levy rates for Sabah and Sarawak will be adjusted to 3% as is the levy rate in the Peninsular.Govt will introduce a RM2.1bil matching method through equity and quasy-equity investments to help companies facing gearing or leverage problems.This will be spearheaded by SME Bank in collaboration with the Bumiputera Agenda Steering Unit (TERAJU) and Bank Simpanan Nasional Bhd (BSN) with funds worth RM600mil and open to all, especially Bumiputera entrepreneurs.An initial fund of RM200 million is allocated through the creation of the Third Infrastructure Facilitation Fund to further boost high-impact infrastructure development activities in collaboration with the public and private sectors.Govt will continue to implement small and medium scale projects totalling RM2.9bil for contractors in G1 to G4 throughout the country.Bumiputera empowerment agenda continues to be given priority in an effort to narrow the economic gap between the races in the country, with RM11.4bil for the implementation of various initiatives.Stamp duty on contract notes will be raised from 0.1% to 0.15% and the limit of stamp duty limit per contracts is abolished. Listed stock trading brokerage activities are no longer subject to service tax.Appointment of at least one woman director in all public listed companies.Sales tax to be imposed on low-value items sourced overseas, sold by online sellers and sent to Malaysia via air courier.Govt will issue Sukuk Kelestarian in ringgit of up to RM10bil next year to be channelled to eligible social or environmentally friendly projects. Malaysia was committed to fulfilling its obligations as a signatory to the Paris AgreementBudget 2022 continues with three main areas of focus: the rakyat’s well-being, competitive businesses, and prosperous and sustainable economy.Govt will continue implementing housing projects, especially for the low-income earners, with a total allocation of RM1.5bil.A collective fund of RM500mil allocated through the GLC Network initiative: Empowering MSMEs to assist entrepreneurs through advisory services and financial supportIncome tax imposed on Malaysian residents on income derived from foreign sources and received in the country from Jan 1, 2022Government plans to introduce a special one-off tax, a "prosperous tax”, on high-income companiesService tax is levied on e-commerce platforms except for food and beverages delivery and logisticsTax identification numbers will be implemented from 2022 to broaden the income tax baseUpdated at 8.45pm, with extracts from Bernama