Income tax reduction to provide RM1.5b additional disposable income

KUALA LUMPUR: The reduction of two percentage points individual income tax rates in the 2018 Budget will provide additional disposable income of RM1.5 billion that can be spent by the rakyat, said Datuk Seri Najib Abdul Razak.
"The government will continue to increase household disposable income, as well as narrow the income gap in the country," the Prime Minister said when tabling the Budget at Parliament today.
He said the tax reduction, which would benefit 2.3 million tax payers, especially those in the middle 40 group or specifically mid-income range households with income less than RM9,000, would be given to
the following income tax bands:
Income Tax Band Tax Reduction

>> RM20,001 to RM35,000 from 5% to 3%
>> RM35,001 to RM50,000 from 10% to 8%
>> RM50,001 to RM71,000 from 16% to 14%
Najib said this reduction measure, provided for income tax band between RM20,000 to RM70,000, would increase the tax payer's disposal income of up to RM1,000, with more than 261,000 individuals no longer subjected to income tax. — Bernama