JKE512E - Public Sector Economics

Ali works 8 hours a day, 5 days-a-week and his taxable income is RM48,000. His tax burden is RM1,640 being RM600 on the first RM35,000 and RM1,040 on the remaining RM13,000. He is offered to work ONE extra hour a day for the whole year. If he agrees, his taxable income will increase to RM52,000.

Taxable Income Income Range (RM) Rate % Tax (RM) 5,001 - 20,000 On the first 5,000 1 0 Next 15,000 150 20,001 - 35,000 On the first 20,000 150 Next 15,000 450 35,001 - 50,000 On the first 35,000 CO 600 Next 15,000 1.200 50,001 - 70,000 On the first 50,000 14 1,800 Next 20,000 2,800 Table/ Jadual 1