KUALA LUMPUR, Oct 7 — Those earning between RM50,001 and RM100,000 will have their income tax payment slashed by two percentage points, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz announced today.

In tabling Budget 2023, Tengku Zafrul said that this would mean those in the aforementioned bracket would have their income tax payable rate slashed from 13 per cent to 11 per cent and 21 per cent to 19 per cent for those earning between RM70,001 and RM100,000.

Working mothers returning to work after their “career break” would also be exempted from paying income tax for wages earned between 2023 and 2028, in an effort to encourage more women to return to work.

Tengku Zafrul said that the Budget 2023 was compiled after 200 stakeholder engagements, 250 memorandums and 12,000 public suggestions, and is based on the 3R approach; responsive, responsible, reformist.

RM372.3 billion has been allocated for Budget 2023, compared to RM332.1 billion in 2022.