KUALA LUMPUR: The government is likely to stick to its fiscal discipline in balancing the books when the fiscal budget for next year is tabled, says AffinHwang Capital Research. Private consumption will remain healthy, supported by favourable labour market, steady income growth and positive credit environment. The government is also likely to cut personal income tax for the medium income group earners from the current 28 per cent to 27 per cent with other tax reliefs. “Based on our estimate, a 1 per cent-point reduction in the personal income tax for all income brackets will involve the government foregoing an estimated RM1.3 billion in revenue collection.”A proposed reduction in personal income tax rate will narrow the tax rates gap between corporate income tax and personal income tax. On its outlook for the corporate tax rate, the research house does not foresee any cut this time round and expects the current corporate tax rate tiered system to be reviewed.

Source: New Strait Times October 09, 2017 11:26 UTC