Government initiatives to increase the nation\u2019s disposable income have proved fruitful with the fallen tax rate.<\/p>\n
It was reported Malaysians saw a lower personal income tax burden as tax rates have fallen from 28% in 2008 to 24% currently. Additionally, corporate tax rates have also reduced from 27% in 2008 to 24% now.<\/p>\n
The administration had made moves, such as raising the minimum threshold above RM4,000, to ensure the tax system will not relapse to its previous state.<\/p>\n
Furthermore, a lowered tax rate by 2% for incomes between RM20,000 and RM70,000 was announced during Budget 2018, which ensures those who earning outside of that income bracket will be excluded from taxes.<\/p>\n
With this, over 260,000 will be exempted from paying tax, while disposable income has increased from RM300 to RM1,000. This translated into a total of RM1.5billion for the predominately middle-income population.<\/p>\n
Benefits such as tax relief to encourage Malaysians to save included the RM6,000 relief available for National Education Savings Scheme (SS1PM) net savings for the next three years.<\/p>\n
Other benefits included the introduction of a RM2,500 lifestyle tax for newspapers, smartphones, tablets, internet subscriptions and gym memberships.<\/p>\n