KUALA LUMPUR - The personal income tax reduction announced in Budget 2018 will enable people to have more money in their pocket, said Communications and Multimedia Minister Datuk Seri Salleh Said Keruak.
He said 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 RM1.5bil, or an increase in the people’s disposable income by RM300 to RM1,000.
“This extra money would be contributing back to the economy via consumption. At the end of the day, businesses would also make more money,” he said in his blog posting.
The Budget was tabled by Prime Minister Datuk Seri Najib Tun Razak in the Dewan Rakyat on Friday.
“We need a balance between inflow and outflow and not cut inflow and increase outflow,” he said.
Salleh said Najib knew that budgets must take into consideration many factors and that plans must take into account both short-term and long-term needs, and that was what Budget 2018 was all about.
Alluding to alternatives proposed by the Opposition, he pointed out that populist policies such as removing all taxes and offering everything free to the people was not only unrealistic but also unsustainable.
“Just to gain support and become popular while jeopardising the future of the country is very irresponsible,” he said.