Barisan Alternatif presented its budget for 2003 today three days before the government is scheduled to announce its budget promising better income for the rakyat (people), civil servants, families and business community.

The 'alternative' budget presented at the Parliament's meeting room this afternoon by Universiti Malaya's economic professor Dr KS Jomo planned an increase in personal tax reliefs from the current RM8,000 to RM9,000 to benefit families.

In addition, Jomo said that tax exemption for dependents such as children and parents should be extended to enhance family ties and responsibilities.

For civil servants, he proposed a hike in their income by RM100 and the current interest rate of four percent for house purchase be replaced by a 0.5 percent management charge.

For the business community, Jomo said that the government should introduce a progressive tax structure for corporate companies which will benefit small- and medium-size industries.

Only 20 percent corporate tax should be imposed on companies earning less than RM20,000, he added, while those profiting RM80,000 and more should be imposed with a 50 percent tax.

"This structure will benefit small- and medium-size industries and will encourage them not to evade taxes in the future," he told a crowd of some 80 people comprising mostly opposition MPs and supporters who were at his 'budget' presentation.

"Currently, many of these companies prefer not to participate with government programmes because they do not want to pay high taxes," added the political economist who assisted the opposition front in drafting the plan.

The 3K budget

The BA first presented its budget in 1999.

This year's budget, dubbed the 3Ks (kemakmuran, keadilan, kesejahteraan or prosperity, justice and well-being), is complete with statistics, charts and detailed information regarding the current economic situation.

Several incentives for health, education, housing and IT (Information Technology) development are also offered.

It is learnt that the committee, coordinated by Keadilan deputy president Abdul Rahman Othman involved individuals such as former Bank Negara senior officer Rosli Yaacob, PAS central committee member Dr Mohd Hatta Mohd Ramli, Husam Musa (PAS-Kubang Kerian), Keadilan secretary-general Sahri Bahri, Abdul Rahman Yusof (Keadilan-Kemaman) and PRM leader Syed Shahir Syed Mohamud.

Today's presentation of the 'alternative' budget is the opposition's way of giving the government 'a run for its money' as Prime Minister and Finance Minister Dr Mahathir Mohamad is due to announce the government's budget proposal in Parliament on Friday.

Meanwhile, Jomo also proposed that higher taxes be imposed on tobacco, alcohol and gambling to discourage the bad habits associated with these goods and activities.

On gambling, Jomo said that the existing companies in operation are monopolised by cronies of the ruling Barisan Nasional coalition.

He added that BN leaders often receive 'gifts' from these companies, adding that they should be investigated by the Anti-Corruption Agency.

Review EFP policies

Jomo also recommended that the management, investment policies and annual return rate of the Employees Provident Fund be reviewed and reformed to benefit workers.

"Since the 1980s, and especially since the 1997-8 financial crisis, EPF money has been misappropriated several times to salvage crony companies," he said.

"These bring about losses that will eventually be borne by EPF contributors," he added.

Present at the two-hour presentation were key PAS and Keadilan MPs, Keadilan president Dr Wan Azizah Wan Ismail, PRM deputy president Rustam Sani and the party's secretary-general Sanusi Osman.