Individual tax cut to boost economy: Salleh

KUALA LUMPUR: The individual income tax reduction announced at the tabling of the 2018 Budget would enable people to have more money in their pocket, said Communications and Multimedia Minister Datuk Seri Salleh Said Keruak.

Salleh noted that the lowering of the tax rates by two percentage points for income tax band between RM20,000 and RM70,000 would generate an additional disposable income of RM1.5 billion, or an increase in the people’s disposable income by RM300 to RM1,000.

“This extra money would contribute to the economy via consumption. At the end of the day, businesses will make more money as well,” he said in his blog posting yesterday.

The 2018 Budget was tabled by Prime Minister Datuk Seri Najib Abdul Razak in the Dewan Rakyat on Friday.

Salleh, who is also Umno treasurer, said the prime minister’s focus was on how to assist the needy while at the same time, balance the accounts so that the country could still earn enough to fuel development.

“We need a balance between inflow and outflow and not cut inflow and increase outflow.”

He said Najib knows that plans must take into account both short and long-term needs.

Special assistance for civil servants (RM1,500)

Assistance for padi farmers 3 months

Malaysia children trust fund ADAM50 Initial saving fund (RM200)

1Malaysia education saving scheme (SSP1M) matching grant (RM500)

Special assistance for tok batin & village heads (RM1,500)

Increased allowance for senior citizens (RM350)

Special assistance for KAFA teachers, imam, takmir, bilal & siak (RM1,500)

Increased allowance for PWD (RM50)

Special financial assistance for government retirees (RM750)

Reduced individual income tax rate & increased disposable income between RM300 and RM1,000

Abolition of toll collection at four toll plazas