Good News For M40, Tax Relief Increased To RM12,000
KUALA LUMPUR, Oct 9 (Bernama) -- The individual tax relief limit has been increased to RM12,000 from RM9,000, which has not been reviewed since 2010, benefiting the middle-income group (M40), said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Finance Minister, said the tax rate for individual residents was reduced by one percentage point.
“The taxable income band from RM70,000 to RM100,000 will be reduced to 18 per cent, and the taxable income band from RM100,000 to RM150,000 will be reduced to 24 per cent,” he said while presenting Budget 2027 in the Dewan Rakyat today.
Anwar also announced individual tax reliefs, including expanded medical treatment coverage that includes postnatal care services as well as care for parents and grandparents, covering all care expenses and no longer limited to health.
The exemptions also include sports equipment covering the purchase of sports shoes, tuition fees, and extended skills covering all fields of study and children’s tuition.
Additionally, the lifestyle exemption now includes subscriptions to artificial intelligence (AI), as well as the costs of vaccinations and adopting pets from registered centres.
At the same time, Anwar said the government is taking a progressive approach by adjusting the tax rate for high-income individuals earning above RM1 million to 30 per cent.
“This means that the increase in tax relief and the reduction in individual tax rates will provide an additional disposable income of up to RM1,600 to approximately five million taxpayers,” he added.
-- BERNAMA