Not a very stimulating stimulus package for me

Just when I thought that at least one of that action items in the RM60B stimulus package might be relevant and beneficial to me who has a running housing loan but unfortunately the Inland Revenue Board (IRB) clarified in the media today that the RM10,000 tax deduction for interest on houing loans will be applicable for new properties bought (Sales & Purchase signed) between March 10 2009 and December 31 2009 and not for all housing loans Sob! Sob! (and you are not supposed to rent the property out too)

So after all, the stimulus package is not so directly stimulating for me after all. I think only two actions plans that is relevent to me is the price control on control food items and the tax deduction on my housing loan interests paid. Maybe the control on toll rise may help but for now I do not need to travel on highway that much.

The impact on control food items is minimal to me. I take my food and drinks with less sugar, less oil and less carb anyway (I am trying to stay healthy). The tax deduction on housing loans can really help stretch my ringgit a bit further but with the clarification from IRB that the deduction only applies for new purchases....so now I need to cross off stimulus action#2 as something that can benefit me. Let's not talk about retrenchment benefits for now. This is a benefit which I do not want!

I think that tax deduction should apply for all housing loans. I am paying more than a thousand ringgit per month on housing loan interest alone. The more money I have in my pocket, I may use it to buy some other things I might need thus in a way stimulating the economy, right? The restriction that the benefits only applies to new purchases will only help the developers who at anytome is more cash rich than I am.

So in summary the RM10,000 tax deduction benefits applies to.....
- property purchases berweem March 10 2009 to December 31 2010
- only one property per Malaysian citizen and resident
- Malaysian citizen and must reside in Malaysia only
- Property must not be rented out
- The tax deduction is given for three consecutive years from the first year the housing loan interest is paid and is effective from the year of assessment 2009

Sigh......

Source: The Star