The Top 20 (T20) group of income earners in the country contributed RM33.68 billion or 85% of the total personal income tax collected in 2022 (this beats my earlier assumption that M40 provides the bulk of personal income tax). The Inland Revenue Board (IRB) said total personal income tax collected in 2022 — which amounted to RM39.26 billion — was equivalent to 19% of the total RM175 billion tax collected in 2022.
The RM175 billion total tax collected in 2022 was also the highest on record. Apart from the RM39.26 billion personal income tax, there was RM97.94 billion worth of corporate tax (55% of total) and RM37.8 billion worth of real property gains tax, stamp duties and taxes on cooperatives (26%). Income tax collected from the Middle 40 income earners (M40) group was RM5.38 billion in 2022, which is equivalent to 13% of the personal income tax collected.
Source: https://ms.wikipedia.org
As for 2023, the IRB expects income tax contributions from the T20 group to increase slightly compared to 2022. Income tax contributions from M40, on the other hand, is expected to decrease, as the government has provided a 2% reduction for the M40 tax bracket, which is expected to benefit 2.4 million taxpayers.
If we also remove subsidies sometime in the future, T20 will bear the brunt – a “tax” on the T20. That’s why we need to examine other tax measures – Tobin tax, inheritance tax, wealth tax and a widened windfall tax.
Reference:
T20 contributed 85% personal income tax in 2022, Anis Hazim, theedgemalaysia.com,
30 May 2023
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