KUCHING: Most members of the public are of the view that private employees should receive tax-free bonuses.
On January 20, Prime Minister Datuk Seri Anwar Ibrahim announced that bonuses given by the state governments to civil servants will no longer be taxed.
The decision was made following a request from Premier Tan Sri Datuk Patinggi Abang Johari Tun Openg after the Malaysia Agreement 1963 (MA63) implementation action meeting was held here.
With that, the public opined that bonuses for private employees should also be exempted from tax as they contribute to the country in the workforce and economy as well.
New Sarawak Tribune has reached out to a few people to get their comments on the topic.
SHAHRIZAL ISA, 28
Censorship Editor
Yes. The private sector also needs to receive bonuses because it is a major contributor to the work industry. If employees don’t get bonuses, at least the private sector gets to increase their allowance. It should be equal for both sectors.
L A REMINIO, 28
Procurement Engineer
I think bonuses should be tax-free, but we all know the economy doesn’t work like that. While it is nice for public servants to have their bonuses tax-free, the amount given is quite meagre, to begin with. Hence the rationale for exempting it from tax may seem logical. As for the private sector, taxes sometimes can go up to 3-5 months’ salary, which is bound to be taxed. So my verdict would be to set up a more lenient regulation when it comes to bonuses, perhaps a smaller percentage of the taxable amount should be applied.
CALVIN DIOR, 32
Sales Consultant
For the private sector definitely, the bonuses should be tax-free. From my point of view as a private sector employee, bonuses are often small as well, so it would be good to exempt the bonus from tax, thus making the employees feel appreciated for their hard work in the workforce industry.
ANDERSON SELI, 30
Private Detective
I agree with that, I believe the private sector employers and employees will benefit greatly from tax-free bonuses, while also promoting equality between the government and private sectors.
