Commentary proposes uniform tax rate for employment income in 2027 Budget
Summarised by AI from 1 article
A commentary has proposed revisiting Advance Personal Income Tax ahead of the 2027 Budget, calling for employment income to be treated as a distinct category with a uniform tax rate.
The writer argued that salary represents compensation for services rendered, and its fundamental nature does not change with higher earnings. Therefore, progressive tax treatment based solely on salary differences should be reconsidered.
Under the proposal, employment income would follow a simpler and predictable assessment, while income from investments, rental properties, and businesses would continue under separate provisions.
The commentary noted this arrangement would prevent an employee's salary from being pushed into higher marginal tax brackets by additional income from other sources.
