Published: Wednesday October 17, 2012 MYT 10:00:00 PM
Ali Hamsa: Income tax exemption on bonus will affect govt revenue
PUTRAJAYA: A proposal for the bonus payment to civil servants to be exempted from income tax can be detrimental to government revenue if implemented, said Chief Secretary to the Government Datuk Seri Dr Ali Hamsa.
He said likewise, private sector employees might also ask for their bonus to be exempted if the Government were to approve the proposal.
"Ironically, the proposed income tax exemption will not benefit civil servants earning less than RM2,700 a month as they are already exempted from income tax," he said at a meeting with Cuepacs officials here Wednesday.
Cuepacs president Datuk Omar Osman had asked for the bonus payment to civil servants in December and January be exempted from income tax.
At a news conference later, Ali said the meeting focused on efforts to improve the public service and iron out several issues.
Hence, Ali said civil servants were welcomed to email him if they have any suggestion or enquiry. - Bernama