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 Salleh Said Keruak.
Salleh noted that the lowering of the tax rates by two percentage points for the income tax band of between RM20,000 and RM70,000 would generate an additional disposable income of RM1.5 billion, or an increase in 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 would make more money as well,” he said in his blog posting.
The 2018 Budget was tabled by Prime Minister Najib 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,” 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 2018 Budget was all about.
Alluding to alternatives proposed by the opposition, he said populist policies such as removing all taxes and offering everything free to the people was not only unrealistic but unsustainable as well.
“Just to gain support and become popular while jeopardising the future of the country is very irresponsible,” the minister said.