Budget 2023: Income tax rate down for those earning below RM100,000

– Bernama

KUALA LUMPUR: The personal income tax rate will be lowered by two percentage points for those earning RM100,000 and below annually, says Datuk Seri Anwar Ibrahim.

The Finance Minister, when announcing the revised Budget 2023 on Friday (Feb 24), said the rate would be lowered from for those in the RM35,000 to RM100,000 income bands.

"This will benefit 2.4 million taxpayers, as they will have additional income of up to RM1,300," said Anwar in Parliament.

However, those with higher earnings in the T20 group would incur more tax, which will be raised from 0.5% to 2% for those earning between RM100,000 to RM1mil annually.

"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.

"Through this approach, the government's net tax revenue will reduce by RM900mil and it will benefit the people, particularly the M40," added Anwar.

He also said the B40 had benefited from various forms of aid and the M40 had been weathering through the increased cost of living.