By Nur Ashikin Louis and Nancy Nais
KUCHING, Jan 20: Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg’s proposal to have Sarawak civil servants’ salary bonus be exempted from tax has not only been approved but also will be applied throughout Malaysia.
Prime Minister Dato Seri Anwar Ibrahim said the Federal government has agreed to Abang Johari’s proposal after the latter’s insistence and taking into account that it was a reasonable move.
“State government bonus is subject to tax. However, following Abang Johari’s insistence on this tax exemption proposal during last night’s dinner, I think it is reasonable especially when the bonus is not that high. Therefore, the bonus will be exempted from tax.
“Additionally, this proposal by the Premier would apply to all civil servants in every state. Although it is proposed for Sarawak, we will adopt this proposal for all civil servants throughout the country,” he said during a special press conference after the Malaysia Agreement 1963 (MA63) Technical Committee meeting held at the Sarawak Legislative Assembly (DUN) Complex today.
The approval for tax exemption would also be extended to cover the State incentive payment or special assistance to all civil servants nationwide. — DayakDaily
