KUALA LUMPUR: The government today announced a two per cent cut in individual tax for the RM35,000 to RM100,000 taxable income band.
Prime Minister Datuk Seri Anwar Ibrahim during the tabling of 2023 Budget said the B40 group was often given various forms of assistance while the middle-income group - the M40- had to remain patient, despite being squeezed by the gripping rise in the cost of living.
"Therefore, this move will benefit 2.4 million taxpayers with disposable income up to RM1,300."
He said while the M40 would benefit from the tax reduction, the government would raise the tax between 0.5 percent to two percent for taxable income above RM100,000.
"Less than 150,000 taxpayers will have to deal with the higher taxes," he said.
Anwar added that the move would see RM900 million less in personal income taxes collected, which he said would benefit the M40 group.
