Education Taxation

The time for tax payers to fill up their respective tax forms are ending on 30th April 2010. For those who are in charity / donations and have maximize their tax claims / rebates will be fuming mad if their remuneration relief’s has max out.

This year many changes n discussion have been centered on our education system n in education development. There seems a trend looking forward where more responsibilities are given out to parents, alumni, corporate community who are very concern n who believe strongly in our education system? Whilst we embrace the new economic concept n high income vision, we all know only through education that we will be in a better position to achieve those two objectives.

The current tax rebates / incentives such as in education related purchases of computer, books, allowance for our children, tuition rebates, professional fees, charity or donations towards the arts, library n sports facilities, deposits in SSPN n premiums in insurance for education policies are good n fine, but for some one who are in the higher tax brackets n who have children in preschool, primary, secondary n tertiary education may need more tax breaks to finance their children’s education. PIBG fees should be given tax exemption for instance.

Higher tax breaks should be given for children in private education n matriculation or in foundation classes at the higher education level. Why must the bench marks for tax reliefs be at the government university level? Since, Malaysia wants to be an education hub, please give incentives to Malaysian parents who wish to send their children to these world class universities locally, at higher education tax incentives than now. Most of our education centers need tax breaks for their student’s parents n also enough incentives for running their education business. If Malaysia aspires to be the next world class education hub, you need to incentives the education industry too.

If favorable education incentives are giving to the parents’ n industry practitioners, many issues will be resolve and would greatly jump start Malaysia to be the next education hub in the world. If the aspiration of having 150,000 foreign students to aspire us to be the education hub, what more of the more than 500,000 students every year who be going into the tertiary education system, if their respective parents and institution receive such tax incentives and tax breaks, it would definitely motivate these parents and educators and together will place Malaysia’s dream as an education hub.