How much revenue will Malaysia lose from tax cuts?

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Malaysia's Tax Revenue Reduction Estimated at RM1.3 Billion Following Individual Income Tax Rate Cut

The Malaysian government's decision to reduce the individual income tax rate by two percentage points is projected to result in a decrease in tax collection by approximately RM1.3 billion. This fiscal adjustment is anticipated to directly benefit around 260,000 taxpayers across the nation.
Impact on Tax Revenue Collection

The reduction in the individual income tax rate, set at a two percentage point decrease, is directly linked to an estimated RM1.3 billion shortfall in government revenue. This figure represents the anticipated decline in tax collection as a direct consequence of the lower tax rates being applied to individual incomes.
Beneficiaries of the Tax Reduction

Approximately 260,000 taxpayers are expected to gain from this tax cut. This measure specifically targets individuals, with the Inland Revenue Board (IRB) noting that those earning below RM3,100 were already exempt from paying income tax in previous assessment years.
Projected Revenue Outlook

Despite the anticipated RM1.3 billion reduction in tax collection, the IRB remains optimistic about overall revenue growth. This positive outlook is based on expectations of continued economic development, which is projected to offset the immediate impact of the tax rate reduction.

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How much revenue will Malaysia lose from tax cuts?

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