How Does Reduction of EPF Deduction from 11% to 8% Affects Your Income Tax?

Update: I had reviewed my article.  Rather than rewriting the whole article to amend where was wrong, I'm leaving this here and posted a new article here.  Hopefully, this article answers your queries better.

Update: been receiving quite a few comments asking me on this post. Rest be assured I will try to get this answered. As I don't want anyone get into trouble for filing the wrong tax return, I've decided to ask my contacts in LHDN to vet through my interpretation. Any amendments will be clearly highlighted. Hope that helps. 

Yesterday soon after the announcement of the Budget recalibration, some individuals began to spread rumours that when the govt reduce the employee's portion of EPF deduction, the government will be able increase their income tax base.