Consider lower taxes for the M40 group
The government is advised to reduce the taxes on personal income through a targeted approach for the M40 group in the tabling of Budget 2023. According to Soh Lian Seng, Head of Tax at KPMG in Malaysia, this could be one of the ways to increase the purchasing power of M40s that otherwise would’ve not received any aid from the government.
In 2020, the government has announced the reduction of the personal income tax by one percent for individuals with an income between RM50,001 – RM70,000. “The one percent reduction [of personal income tax] is not for all categories. Perhaps the government could consider a similar tax reduction for the lower categories as well. This is to ensure that the rakyat have more disposable income and higher purchasing power,” he added.
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