By Syed Jaymal Zahiid
KUALA LUMPUR, Oct 23 — Penang chief minister Lim Guan Eng today blasted the prime minister for what he described as a lopsided tax scheme when it was announced that the tax rate for those working at Iskandar Malaysia will be lower than the rate imposed for the rest in the country.
Datuk Seri Najib Razak during the tabling of the 2010 Budget in Parliament here said the government, in a bid to develop Iskandar Malaysia, an economic corridor in Johor, will impose an income tax rate of 15 per cent for workers residing there.
The lower tax rate, however, will not be enjoyed by workers in other parts of Malaysia though Najib did announce a 1 per cent reduction in income tax rate from the initial 27 per cent.
The move, said the prime minister, aims to attract local and foreign talent as well as accelerate the development of the southern economic corridor
Lim, who is DAP secretary-general, said although he welcomes the reduction, it was unfair that only those working at the Iskandar Malaysia enjoy such tax incentives.
“This is against Najib’s 1Malaysia. This is 2Malaysia, where two systems are applied for the same nation,” he told a press conference held after the tabling of the 2010 Budget.
However, giving credit where it is due, Lim applauded Najib’s “green incentives”, a policy targeted at developing environmentally friendly technology.
Meanwhile, Pakatan Rakyat (PR) national de facto leader, Datuk Seri Anwar Ibrahim is not impressed with Najib’s maiden Budget.
Speaking at the same press conference, Anwar said Najib’s revelation during that foreign investments have dropped drastically, from RM 19.7 billion to RM 3.3 billion last year, needs probing.
“We must investigate thoroughly as to how this had happened,” said Anwar.
The parliamentary opposition leader also said Najib was vague in his explanation as to how the government plans to reduce the current alarming deficit of more than 9 per cent to 7.5 next year.
The PR lawmakers are already preparing their assault on Najib’s Budget this Monday when Parliament debates the Federal Budget.
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