How much will the government save taxpayers by lowering personal income tax rates?
In the 2023 Budget, the government has proposed to reduce the personal income tax rate for some tax year 2023, i.e. the tax rate for the taxable income group between RM50,000 and RM100,000 will be reduced by 2%. For the taxable income group between RM250,000 and RM400,000, the tax rate will be increased by 0.5%.
This also means that the tax rate for the RM50,000 to RM70,000 taxable income group, which was originally 13%, will be reduced to 11% in the tax year 2023. This group will be able to save RM400.
The taxable income group between RM70,000 and RM100,000, which was originally 21%, will be reduced to 19% in 2023, resulting in a saving of RM1,000.
For the taxable income group between RM100,000 and RM250,000, although the tax rate has not been reduced, but still need to pay 24% tax rate, but because the first RM50,000 to RM100,000 taxable income is reduced by 2%, so this group can also save RM1,000.
For the taxable income group of RM250,000 and above, this group can also save RM250 after the 2% reduction in the first RM50,000 to RM100,000 taxable income.
