(Budget 2023) How Much is your Tax Savings or Tax Burden?

During the re-tabled of Budget 2023, Prime Minister cum Finance Minster Datuk Seri Anwar Ibrahim said the government realised it has not provided much for the country’s middle-income M40 group as the focus has been on assisting the B40 and hardcore poor in recent years.

In dealing with high cost of living and increasing disposable income among middle-income Rakyat, it is proposed the resident individual income tax rate be reduced by 2% for each chargeable income band between RM35,001 to RM100,000.

At the same time, the government will raise the tax rate of those earning between RM100,000 and RM1 million by 0.5% to 2%, depending on their income brackets.

How much is the tax savings or tax burden?

A comparison of the current individual income tax rate and the proposed tax rate

are as follows:

The savings and increase in income tax for individuals resulting from the changes

of tax rate are as follows:

Effective Date: From the year of assessment 2023.

Highlights:

1. Obviously, this is another act of Robinhood when the less well-off gain economically at the expense of the better-off.
2. There is a BIG gap between the line of RM100k chargeable income. It's a huge 6% tax rate difference there. Wow. 💢💣
   
3. Although the tax rate remained the same for those with chargeable income of RM1mil and above, the effective tax payable is still will be higher as shown

~ The End ~

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