Budget 2023: Income tax raised for T20 group

KUALA LUMPUR: Income tax will be raised by 0.5 to two percentage points for the T20 group or those earning between RM100,000 and RM1mil, says Prime Minister Datuk Seri Anwar Ibrahim in tabling Budget 2023.

“However, less than 150,000 tax payers will be charged with higher taxes,” said Anwar.

"This amount is small; those considered rich, we will raise it a little bit so it won't be too much of a burden. They must take up some of the responsibilities.

"This means a more progressive taxation system," said Anwar on Friday (Feb 24).

Meanwhile, the personal income tax rate will be lowered by two percentage points for those earning RM100,000 and below annually.

Anwar, who is also Finance Minister, said the rate would be lowered for those in the RM35,000 to RM100,000 income bands.