Assume monthly basic salary is RM4000.
- If your monthly EPF contribution is 11% ( RM440 ), taxable income = RM3560, income tax payable = RM77 .
- If your monthly EPF contribution is 8% ( RM320 ), taxable income = RM3680, income tax payable = RM109 .
Conclusion : If you choose to contribute 8% , you will end up paying more income tax to the government, which will make the government richer. Finance Minister Najib said this measure is meant to boost up the slow-down market, but from this example wee see that the money does not
go into the market. Instead the money goes direct into the government's pocket through the greater amount of income tax that we will have to pay. Obviously this measure does not help the market at all. Do we still want this kind of government that doesn't have the best interest of the people in mind?
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