KUALA LUMPUR – The government will reduce the individual income tax rate for the M40 group by 2% this year, said Prime Minister Datuk Seri Anwar Ibrahim.
Tabling Budget 2023 today, Anwar, who is also finance minister, said the reduction would apply to those who are earning between RM35,000 and RM100,000 annually, affecting up to 2.4 million taxpayers in the country.
He said this move will provide the M40 group with an increased disposable income of RM1,300.
“So far, the B40 group has often been given various forms of assistance while the middle (income) group, the M40, has shown their patience despite being squeezed by the rising costs of living,” he said, as reported by The Vibes’ Bahasa Malaysia sister portal Getaran.
“I am pleased to announce that the government has agreed to raise the disposable income of the M40 group by reducing individual income tax rates. As I have explained, the government is taking a progressive approach.”
Anwar said while the M40 will benefit from the reduction in tax rates, the government will raise tax rates for those with high incomes.
He said there will be an increase of between 0.5% and 2% for those who are earning between RM100,000 and RM1 million ringgit.
However, he said this only involved 150,000 taxpayers.
“This involves reducing the government’s net tax revenue by RM900 million for the benefit of the people, especially the M40.” – The Vibes, February 24, 2023
