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Income tax reduction under Budget 2018

Oct 27, 2017

Malaysians will enjoy a reduction in income tax rates, under Budget 2018. 

The Prime Minister says those earning taxable income of between 20,000 and 70,000 ringgit per annum, will enjoy a 2 percent reduction in their current tax rate.

This will result in an additional disposable income of between 300 and a thousand ringgit. 

The Prime Minister also announced that toll collection will be scrapped at several highways:

-Batu Tiga, Shah Alam & Sungai Rasau, Selangor 
-Bukit Kayu Hitam, Kedah
-EDL, Johor

Among the other points announced: 

-All civil servants will receive a 1,500 ringgit special payment.

-1 Malaysia People's Aid or BR1M will be continued, with a maximum rate of 1,200 ringgit.

-All Malaysians born between 2018 and 2022 will receive 200 ringgit for initial savings through Amanah Dana Anak Malaysia 2050.

-The grace period for PTPTN borrowers to start paying back their study loans, has been extended to 1 year after they complete their studies, from the current 6 months. 

-200 million ringgit has also been allocated to increase the maximum PTPTN loan cap for students from the low-income group, in marketable courses.

-All local authorities will make it compolsory for new workplaces to provide daycare centres for employee's kids. The initiative will begin in KL.

-The zero-rate GST for reading materials has been extended to all magazines, comics, journals and publications.

-Pulau Pangkor has been declared a duty-free island for items except alcohol, cigarettes and motor vehicles.

-And to encourage tourism, the government will also upgrade the Penang and Langkawi International Airports.