Tax relief benefits two million taxpayers

Syndicated News
Written by Syndicated News

PUTRAJAYA, Jan 28 2016 : The government will give a tax relief of RM2,000 to individual tax payers earning RM8,000 and below per month, for the 2015 assessment year.

Prime Minister Datuk Seri Najib Tun Razak said the move would result in the individual tax payers saving up to RM475 although the government would lose RM350 million in revenue.

“This good news will benefit two million tax payers,” he said at a Special Message Gathering on the 2016 Budget Readjustment, here today.

Najib also announced that the government would redouble compliance and auditing efforts on tax evaders.

Meanwhile, the government agreed to give special consideration by relaxing the imposition of penalties on tax payers to encourage them to come forward to report on their income for the previous years.

He said the tax arrears must be settled before Dec 31 this year.

For the tax-free islands, Najib said the government would restructure the channels for the sale of cigarettes and liquor to further reduce leakages which resulted in the loss of revenue of almost RM1 billion.

However, the Prime Minister said the restructuring was limited to tax-free shops that were licensed by the Malaysian Royal Customs Department.

Thus, Najib said the tax exemption on imported vehicles on the tax-free islands would be tightened on these islands.

“The restructuring measures on cigarettes, liquor and vehicles will not involve local residents and tourists on the tax-free islands,” he said. – Bernama



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