KUALA LUMPUR: The new tax band of 30% for those with a chargeable income of RM2 million a year is expected to generate about RM100 million for the government, according to Finance Minister Lim Guan Eng (pix).
Speaking at the Budget 2020 Forum this morning, he said the announcement was based on a proposal by the World Bank.
“According to the World Bank, even the rate of 30% is considered low, compared to other countries who levy a much higher rate on their top earners.
“We don’t expect to raise that much, but I think it would be roughly RM100 million,“ he said.
Meanwhile, Lim said the government’s expectation for revenue collection in the coming year still stands.
“I think what was said for collection is what we are sticking to,“ he told the media on the sidelines of the forum.
According to the 2020 Economic Report, revenue for next year is expected at RM244.53 billion, down 13.1% from RM263.3 billion.
The government also revised their fiscal deficit target to 3.2% from 3%.
