2pct income tax reduction, RM100 e-wallet top-up for M40

The government has announced a two percent reduction on income tax collection that would benefit the M40 group.

Those with chargeable income below RM100,000 per year will also be getting an e-wallet top-up of RM100 next year.

Breaking down the reduced income tax perks, Finance Minister Tengku Zafrul Abdul Aziz said those with chargeable income between RM50,001 and RM70,000 per year will be paying 11 percent in income tax instead of 13 percent.

For those with chargeable income between RM70,001 and RM100,000 per year, their new income tax rate is 19 percent instead of 21 percent.

Meanwhile, Zafrul also announced the continuation of the e-Pemula initiative for youth, with an RM200 e-wallet top-up for those aged 18 to 20, or part-time workers aged 21 and above.

READ MORE: Budget 2023: The big picture

Tax relief of up to RM8,000 for Skim Simpanan Pendidikan Nasional (SSPN) depositors has also been extended to 2024.

Income tax relief for life insurance has also been increased to RM3,000 and is expanded to cover voluntary contributions to the Employees Provident Fund (EPF)

The limit for voluntary contributions to EPF has been increased from RM60,000 to RM100,000.

Also, tax relief for personal, spouse, and children medical treatment will now include dental checkups and treatment - up to RM1,000, starting in the 2023 tax year.

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