PRIVATE SECTOR EMPLOYERS TO ENJOY TAX EXEMPTION

KUALA LUMPUR, Aug 29 (Bernama) -- The government has proposed tax exemption for private sector employers who give their employees interest subsidies on loans for housing, motor vehicles and education limited to total loans of up to RM300,000 in a move to make employee welfare a priority in the private sector.

Prime Minister Abdullah Ahmad Badawi, tabling Budget 2009 in the Lower
House of Parliament Friday, said tax exemption was also proposed for employers
who
provided mobile phones for their staff and paid their telephone and Internet
bills.

It was also proposed that employers be given tax exemption for staff
discounts of up to RM1,000 a year on company traded goods, he said.

He also said that the proposed tax exemption also covered staff discounts
rendered by the company, such as private schools providing free education to
children of their employees.

It was also proposed that tax exemption be given for childcare allowance of
up to RM2,400 per year.

Abdullah said the government proposed to extend the tax exemption on
medical
benefits by employers to include maternity expenses.

In addition, he said, given the growing acceptance of traditional medicine,
namely acupuncture and ayurvedic, the government also proposed an extension of
tax exemption to cover such medical benefits.

The prime minister said that to assist civil servants with young children,
the government proposed to raise from RM2,000 to RM3,000 from Jan 1 next year
the eligibility criteria of monthly household income for those households
provided with the RM180 monthly subsidy towards nursery fees.

He also said that the free return air fares to home states, between
Peninsular Malaysia and Sabah and Sarawak, enjoyed by government servants once
every two years to foster closer family ties would be provided every year from
Jan 1 next year.
-- BERNAMA