Personal Finance 101: Pay more tax is good!
I hope my tax is increasing every year
Once upon a time, I complained to my mother.
Me: I really cannot stand paying higher tax this year.
My mum: There’s only one way to pay lower. That’s by earning lower.
Oh… that was when I would do my very best to earn ever higher income every year. I know it will help me tremendously because even though I pay more tax, I actually have more money to spend because I have higher income every month. So, do you also complain about paying higher tax like me?
I may pay even more tax in 2023
Why do I say so? Well, we can look at the below photo from EY’s recent report on Budget 2023 which was just retabled. If our chargeable income is between RM35,001 to RM100,000 then our tax rates have been reduced by 2 percentage points. Yeah, that’s a lot of money. It ranges from many cups of coffee at some cafe all the way to a local holiday for two!
No GST… (not a good decision, sorry to say)
With GST, when the country’s economy is rising, the revenues would also rise in tandem too. It is then up to the government on how to do some ‘wealth redistribution’ to the less fortunate ones. If I am earning a lot, I would love to help the less fortunate too. We are all Malaysians at heart. Read all my articles and you should get the idea that I am one of the few who would against foolish statements by some people yeah. Haha.
Anyway, it’s decided that GST will not be introduced until the economy is ready. Please do not ask me what does this mean yeah.
I can transfer property to my children and it’s tax free too (up to RM1 million value)
Happy understanding a little more about tax for year 2023. (nope, not for last year yeah…)
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