Income tax rate reduced by two percentage points
SINAR REPORTER
KUALA LUMPUR - The government has never forgotten the middle-income households and plans to increase the M40’s disposable income for the group, says Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
He said the income tax rate of resident individuals will be reduced by two percentage points for the range of taxable income between RM50,000 and RM100,000.
“First, the taxable range of RM50,000 to RM70,000 rate is lowered by 13 per cent to 11 per cent and secondly, the income range of more than RM70,000 to RM100,000 is lowered from 21 per cent to 19 per cent.
"The range of taxable income of more than RM250,000 to RM400,000 will be combined with a range of over RM400,000 to RM600,000 and is subjected to a tax rate of 25 per cent," he said when tabling the 2023 Budget in Parliament today.
Tengku Zafrul said the special tax treatment, the tax savings of the middle income groups were RM1,000 while for the higher income group would be RM250.
"This would lead to an expected RM800 million to be prepared as an excess income that could be spent by the people," he said.
Tengku Zafrul said the cashless transaction initiative would begin with te M40 e-pemula to be implemented that is an e-wallet credit offer of RM100 to the M40 income group below RM100,000 a year.
"It is expected that eight million individual could claim this credit with the allocation prepared of RM800 million," he said.
