Prime Minister Datuk Seri Najib Tun Razak, during the tabling of the 2018 Budget in the Dewan Rakyat today, said the move would increase the household disposable income of the people from between RM300 and RM1,000, and was aimed at narrowing the income gap in Malaysia.
“This means that an estimated RM1.5 billion in disposable income can be spent by the people. With this move, more than 261,000 individuals are no longer subjected to income tax,” he said.
He further explained the reduction of the individual income tax rate by two percentage points was for income ranging from between RM20,000 and RM70,000.
For income ranging from RM20,001 to RM35,001, the rate is reduced from five to three percent; while that ranging from RM35,001 to RM50,000, the reduction is from 10 to eight percent.
As for those in the income range of between RM50,001 and RM70,000, Najib said the tax rate would be reduced from 16 percent to 14 percent.
In addition, the Prime Minister said the government through the 2018 Budget, would also maintain RM3.9 billion worth of goods and transport subsidies, including cooking gas, flour, cooking oil, electricity, and toll charges. — Bernama
Visit Astro AWANI’s Budget 2018 microsite for more details.