‘HIGHER DISPOSABLE INCOME TO BOOST ECONOMY’
Extra money will go back to economy via consumption, says minister
THE income tax reduction announced in the 2018 Budget will give people more disposable income, said Communications and Multimedia Minister Datuk Seri Salleh Said Keruak.
He said lowering the income tax by two percentage points for those with taxable income between RM20,000 and RM70,000 would generate RM1.5 billion in disposable income, or an increase of RM300 to RM1,000 per person.
“This extra money will go back to the economy via consumption. Businesses will make more money as well,” he said in a blog post.
Salleh, who is also Umno treasurer, said Prime Minister Datuk Seri Najib Razak’s focus was on assisting the needy while balancing the accounts so that the country could earn enough to fuel development.
“We need to balance inflow and outflow, not cut inflow and increase outflow.”
He said Najib knew that budgets must consider many factors and plans must take into account shortterm and long-term needs, which was what the new budget was all about.
Alluding to alternatives proposed by the opposition, he said populist policies such as removing taxes and offering free things to the people were not only unrealistic, but also unsustainable.
“(Doing so) just to gain support and become popular, while jeopardising the future of the country is very irresponsible.” Bernama