Reduction of 3% in EPF..??

Seriously the government is smart... they are really taking this so call as a step to help us save money... and by looking at this i don't think the government is helping us but them, themselves..

In Income Tax all individuals is entitle to a EPF reduction relief.. meaning a maximum of RM6000 can be cut out from the Total Income to arrive to the Chargeable Income...

i.e If my EPF contribution is RM6000 for year 2008 then my total income can be less by Rm6000, and do remember EPF is still at 11%, Now if my EPF contribution is RM6000 my gross salary should be RM54545.45.

If i reduce the EPF contribution by 3%, meaning 8% of RM54545.45 is RM4363.64... and because of this reduction i now have to pay extra tax... of:- (Personal relief is not applied as this is mainly on EPF)

11% EPF 48545.45 tax payable:- 1525+1760.91 = 3285.91
8% EPF 50181.81 tax payable:- 3475+34.54 = 3509.54

So now you can see the difference... rite..? No only that what is we need to also pay for service tax and sales tax if we spend on items and the minimum for this taxes is 5% so the extra money you have, 5% of it will be going back to the government..

So like how Simon say: Who's the bigger Ah Long..??