Bajet 2014

Budget 2014 was announced earlier by Prime Minister Datuk Seri Najib Razak. There was no mention of the status of the current tax exemption for hybrid/electric vehicles, which we’re discussing in a separate post. Here are other auto/transport-related points from the PM’s speech:

  • Transportation services such as bus, train, LRT, taxi, ferry, boat and highway toll will be exempted from Goods and Services Tax (GST), which is set at 6%, when GST begins on April 1, 2015.
  • The GST replaces sales tax and service tax. The current sales tax for cars is 10%. Does this mean that GST will reduce sales tax on cars by 4%?
  • A sum of RM980 million has been allocated to refurbish and upgrade 437 km of rural road networks nationwide. Additionally, RM500 million has been allocated for the Pan-Borneo Highway Project.
  • To address the shortage of parking lots at Hospital Kuala Lumpur (GH), a total of 1,950 new parking lots will be completed in 2014.
  • Providing ‘park-and-ride’ facilities at LRT, KTM Komuter and ERL stations with an allocation of RM62 million.
  • The implementation ofSistem Perkhidmatan Teksi Berpusat (centralised taxi service system) with an allocation of RM15.3 million, to ensure that taxis are distributed more efficiently to customers.
  • Construction of the 316-km West Coast Expressway project from Banting to Taiping.
  • Constructing the Ipoh to Padang Besar double-tracking project, and later, from Gemas to Johor Bahru as well as upgrading rail tracks across the country, with RM2.9 billion allocated.
  • Refurbishment of KTM Komuter EMU (Electric Multiple Units) trains with an allocation of RM28 million, to improve service reliability and frequency.
  • The building of city terminals (hentian akhir bandar) and the upgrading of bus stations in addition to drop-and-ride facilities with an allocation of RM28 million.

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