Govt revenue to fall by RM1.3bil with individual income tax cut

Second Finance Minister Datuk Johari Abdul Ghani said there was no need for a budget recalibration

KUALA LUMPUR: The two percentage points cut in individual income tax rate in Budget 2018 announced last week would reduce the government’s tax revenue collection by RM1.3bil, said Second Finance Minister Datuk Seri Johari Abdul Ghani.  

Nevertheless, he was confident the country’s economy would continue to be stimulated through the government’s planned expenditure.

“We (government) are confident the country’s economic growth can be sustained. For 2018, the rating agencies and also the International Monetary Fund and World Bank are still giving positive projections in terms of economic growth for Malaysia and also global.  

“Being an open economy, if global outlook is good, then it is good for us. And from the growth of our economy, we should be able to collect higher tax (revenue),” he told reporters after launching the National Tax Seminar 2017 organised by the Inland Revenue Board (IRB) here today. - Bernama