SEREMBAN: About 260,000 taxpayers are expected to benefit from the reduction of the individual income tax rate by two percentage points announced currently by the government, says Inland Revenue Board (IRB) deputy chief executive officer (Compliance) Abdul Manap Dim.

He said single individuals earning below RM3,100 were not required to pay income tax.

“For the previous year of assessment, from the total of three million individuals who returned the forms, only 1.8 million were taxable,” he told a press conference after launching the Creating Awareness, Sharing Nation’s Prosperity programme here today.

Manap said that despite the reduction in tax collection of about RM1.3 billion, the revenue collection was expected to increase based on the economic development.

Meanwhile, he said the programme was aimed at bringing the IRB closer to the community and providing people with the opportunity to seek tax advice.