If we look at the personal tax rate, it has been going down for the top tax rate for individuals. On the income tax side, personal tax rate as well as corporate tax rate, there is a lot of pressure on us because our neighbours are all going down. In the long run, we will have no choice as we are to compete for foreign direct investments.As everybody else around us start to lower the tax rate, we have no choice but to lower that (corporate tax rate) as well. Q: The room for the government to reduce income tax this time is quite limited given the revenue stream. The expectation for the middle income was some gradual reduction in the income tax given the GST presence, but it did not happen this time?

Source: New Strait Times October 28, 2016 03:13 UTC