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KUALA LUMPUR: Close to one million resident individual taxpayers will enjoy reduced taxes as part of the government's efforts to increase disposable incomes, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Resident individual tax is reduced by two per cent for taxable incomes of between RM50,000 and RM100,000 per annum, he said when tabling the Budget 2023 themed "Keluarga Malaysia, Makmur Bersama” in the Dewan Rakyat today.

Tengku Zafrul said for taxable incomes between RM50,000 and RM70,000 per annum, the tax rate will be lowered from 13 per cent to 11 per cent, while for taxable income within the RM70,000 to RM100,000 range, the rate will be reduced from 21 per cent to 19 per cent.

Additionally, the tax rate for taxable incomes between RM250,000 and RM400,000 per annum, as well as between RM400,000 and RM600,000 per annum will be at 25 per cent.

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"With this special income tax treatment, tax savings for the middle-income group (M40) is up to RM1,000 and for the top-income group (T20) is up to RM250.

"Consequently, an estimated RM800 million will be available as surplus income that the people can spend,'' he said. - Bernama


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