Nation

2023 Budget: Tax reduction to benefit a million taxpayers [NSTTV]

The move is expected to benefit almost one million taxpayers.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the government has never neglected the welfare of the middle-income (M40) household.

"The government will continue to increase the disposable income of those in the M40 income category," he said.

Those with a taxable income range of between RM50,000 and RM70,000 will have their income tax rate reduced from 13per cent to 11 per cent.

Individuals with a taxable income range of between RM70,000 and RM100,000 will have their rate reduced from 21 per cent to 19 per cent.

"At the same time, people in the RM250,000 until RM400,000 bracket will be grouped together with those in the RM400,000-RM600,000 bracket and subjected to a 25 per cent rate," he said.

The reduction in income tax rate, he said, is expected to result in a savings of RM1,000 and RM250 for the middle- and top-income earners, respectively.

"It is estimated that there will RM800 million available as disposable income for all those who benefit from this," he said.

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