By Ling Hui
KUCHING, Feb 24: The personal taxation rate will be reduced by 2 per cent on taxable incomes ranging from RM35,000 to RM100,000 for domiciled individuals.
Prime Minister-cum-Finance Minister Datuk Seri Anwar Ibrahim said the tax reduction is expected to provide approximately 2.4 million taxpayers will an excess disposable income of up to RM1,300.
While the M40 group benefits from the tax reduction, he added, the Federal government will increase the tax rate between 0.5 to 2 per cent, for those with high incomes ranging from RM100,000 to RM 1 million.
Anwar noted that less than 150,000 tax payers would be subjected to the increased tax rates.
“This approach involves reducing the government’s net tax revenue by RM900 million for the benefit of the people, especially the M40 group,” he said when tabling the National Budget 2023 in Parliament today.
He said while various forms of assistance are being provided to the B40 group, the M40 has been patient despite also been struggling with the increased cost of living.
He was therefore pleased to announce the tax reduction rate to increase the M40’s disposable incomes. — DayakDaily
