KUALA LUMPUR, Feb 27 — Subang lawmaker Wong Chen has proclaimed today that the newly-announced individual income tax rates showed that the government is heading towards progressive taxation.
He said that the government is clearly showing a message that the rich have to contribute more to the country compared to the lower-income groups.
“For me, even though the impact towards the government revenue only increased from RM33.8 million (in 2022) to the forecasted RM 35.3 billion this year due to the new individual tax adjustment.
“In principle, it is necessary to send a message that the government prioritises progressive and fair taxation, that the rich have to pay more and the middle and poor class pay less,” he said in Parliament here.
He also lauded Prime Minister Datuk Seri Anwar Ibrahim’s introduction during the revised Budget 2023 of the capital gains tax for unlisted shares but questioned why it was not expanded to listed shares.
Previously, Anwar announced that residents earning between RM35,000 and RM100,000 annually will have their personal income tax rate lowered by two percentage points under Budget 2023.
He said the government realised it has not provided much for the country’s middle-income group as the focus has been on assisting the bottom 40 per cent households and hardcore poor in recent years.