He said the increase in the tax rate proposed in the 2023 federal budget would affect only those earning more than RM20,000 a month.

Only those with a taxable income of more than RM230,000 a year (or more than RM20,000 a month) will pay higher taxes, he said.

The increase ranges from RM200 to almost RM11,000 on top earners, according to a tax chart from the Treasury which Sim posted.

Sim posted his comments today, after hearing complaints from those who said RM10,000 a month income was not a luxury level of living in places such as Selangor, Kuala Lumpur, Penang and Johor Bahru.

According to the Treasury tax table, those with a taxable income of RM35,000 to RM100,000 would be able to save between RM300 to RM1,000 on their personal income taxes.

Taxable income is the total yearly income minus allowed deductions, such as a personal and spouse allowance, deductions for EPF and insurance contributions, care of elderly parents, and medical expenses, among those deductions.

Taxes for those earning more than RM1 million a year will go up by RM10,950.

The proposed new tax rate was announced on Friday by Prime Minister Anwar Ibrahim, who is also finance minister, when tabling the 2023 federal budget.

He said the top tax rate will be increased by 0.5% to 2% for those earning between RM100,000 and RM1 million a year. Fewer than 150,000 people will be affected.

For those earning between RM35,000 and RM100,000, the income tax rate will be reduced by 2%, with savings of RM300, RM700, and RM1,300 for those in the new 6%, 11% and 19% tax brackets respectively.