'Increase tax relief incentive in Budget 2013'

KUALA LUMPUR: In order to attract and encourage more people to save for
retirement, the Malaysian government should increase the tax relief
incentive to RM10,000 from RM3,000 for the newly launched voluntary
private pension scheme, an independent financial advisor said today.

According
to the Credit Counselling and Debt Management Agency, the ratio of
household debt to the country's gross national product has risen from
69 per cent in 2006 to 75.8 per cent last year, and the total consumer
debt in Malaysia now stands at more than RM660 billion, said Yap Ming
Hui.

"I hope the government can introduce a form of tax relief
for people seeking financial planning services from fee paid
independent financial advisors licensed by Bank Negara and Securities
Commission," he said in a statement.

Tax relief will encourage
more people to take their finances more seriously while providing them
with the right support and guidance from proper channels, said Yap, who
is also Managing Director of Whitman Independent Advisors Sdn Bhd.

He
supported requests for removal of the withholding tax in order for
Malaysia to be more competitive to attract foreign investments.

He
also urged the government to review the personal income tax schedule to
cater for the growing class of middle-income Malaysians.

"In doing so, they are not taxed at the same rate with people of higher earning power," he added.

Prime Minister and Finance Minister Datuk Seri Najib Tun Razak will table Budget 2013 in Parliament on Sept 28.

BERNAMA