No more tax on bonuses given to civil servants, says PM

Photo: Bernama

KUCHING: Bonuses given by state governments to civil servants will no longer be taxed, says Datuk Seri Anwar Ibrahim.

The Prime Minister said he decided on this following a request from Sarawak Premier Tan Sri Abang Johari Tun Openg.

"At present, the bonus given by the state government is subject to tax.

"But after Abang Johari's urging on this issue, which I think is reasonable because the bonus amount is not high, it will be exempted from tax," he told a press conference after chairing the Malaysia Agreement 1963 (MA63) implementation action council here on Friday (Jan 20).

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Anwar said the tax exemption would be applicable to civil servants in all states.

"Although the proposal came from Sarawak, we will implement it for all civil servants in the country," he said.

In December, Abang Johari announced that the Sarawak government would give a bonus of one-and-a-half months' basic salary or a minimum of RM2,000 to state civil servants for 2022.

He also announced a special incentive of RM500 to 137,000 federal civil servants serving in Sarawak.