About 1 Million individual taxpayers will enjoy reduced taxes! Announcing this under Budget 2023, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said the government will reduce the tax rates for taxable income ranging between RM50,001 to RM70,000, and RM70,001 to RM100,000 by 2%.
Reducing the tax rates is part of the government's efforts to increase disposable incomes. Currently, taxpayers with a chargeable income between RM50,001 to RM70,000 are charged with 13% tax, while those between RM70,001 to RM100,000 must pay 21%.
Meanwhile, taxpayers with chargeable income of RM250,001 to RM400,000 and RM400,001 to RM600,000 will be standardized to pay 25% next year.
Currently, those only taxpayers in the RM400,001 to RM600,000 income bracket are required to pay 25% tax; those earning between RM250,001 to RM400,000 per year, meanwhile, are currently paying a tax rate of 24.5%.
New tax rates for Year 2023:
|
Chargeable income (RM) |
Current income tax rate |
New income tax rate |
|
50,001 – 70,000 |
13% |
11% |
|
70,001 – 100,000 |
21% |
19% |
|
250,001 - 400,000 |
24.5% |
25% |
|
400,001 - 600,000 |
25% |
25% |
With these changes, Tengku Zafrul said the middle income group will get to enjoy tax savings of up to RM1,000, whereas the high income group will be able to save up to RM250.
Hence, an estimated surplus of RM800 million will be freed for the people to spend. The tax rates for other chargeable income brackets remain unchanged.
The Budget 2023 was tabled by Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz last Friday October 7, 2022 at Parliament.
With an allocation of RM372.3 billion - higher than the previous year’s of RM332 billion, Budget 2023 is expected to boost the welfare of Keluarga Malaysia, the country’s economic recovery and socio-economic development.
The theme for Budget 2023 is “Strengthening Recovery, Facilitating Reforms Towards Sustainable Socio-Economic Resilience of Keluarga Malaysia”.
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