Budget likely to maintain proposed tax cut for M40, rise for T20

PETALING JAYA: The Chartered Tax Institute of Malaysia (CTIM) does not anticipate any new tax to be introduced in the upcoming Budget 2023, but expects the government to maintain the two-percentage point (ppt) income tax cut for the middle-income group (M40) and 0.5-ppt tax rise for the high-income earners (T20) proposed in the previous budget.

President Chow Chee Yen said the purpose of the tax reduction was to help the M40 with the rising cost of living and increase their disposable income, while the tax increase on the T20 is to alleviate the reduction in revenue collection caused by the tax cut.