This marked a tragic year for many in the world. For example, the natural disasters in Myanmar and China have caused many people to suffer. Thousand of lives have been lost because of these unavoidable natural disasters.

Many people think Malaysia is indeed very blessed as we are almost free from any kind of natural disaster. But what about the disasters caused by government policies as in the the recent increase in our fuel price?

Well, it is perhaps not the time to argue whether or not the increase in fuel price is justifiable as one has to live with it. What is more important is what is coming up soon – the 2009 Budget which will be announced in couple of months.

The tax rate for individuals over the years has remained unchanged (i.e. 0-28%) while corporate tax has been reduced over the year from 28% in 2006, to 27% in 2007, to 26% in 2008 and to 25% in 2009.

The rationale of reducing corporate tax is that it is a way to reduce the financial burden of a business. However, has the government considered the burdended life of the public?

The individual personal relief of RM8,000 has remained unchanged since the year 2000. This is unreasonable given the amount of inflation each year in Malaysia. This RM8,000 per year means RM666 a month and RM22 a day.

In view of the current food price crisis and the increase of fuel price by more than 40%, it may seem ridiculous to assume one can survive with RM8,000 relief a year, particularly, those living in city where they is no choice but to travel by car.

Stop talking about using public transport as it is totally hopeless in most of the places in KL. The price of food is soon going to increase as a result of the increase in petrol prices compounded by the global ‘food crisis’.

Hence, I urge the policymakers to consider the implication of the recent increase in fuel prices when the budget is prepared.

In addition, I would like to urge the public to be aware of tax treatments which seem to give us incentives but are deceiving. Many of the incentives given will only benefit those with in the higher income bracket.

For example, the change of a computer rebate of RM500 to a relief of RM3,000 and the single tier of dividend system.

In short, while the government has always claimed to take care of the poor, its policies however have not been consistent with their claim.

Perhaps the policymakers should give more serious thought when it comes to the tax structure for the next budget. Meanwhile, let us all pray hard it will not be another disaster!