Budget 2027 will introduce expanded individual tax relief, including expenses for pet vaccinations and adoption from registered centers. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced these measures while presenting the budget in Parliament today.
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Anwar explained that the new provision will cover a variety of animals, such as cats, butterflies, and snakes. The government will also broaden medical tax relief to include postnatal care services and will no longer restrict relief for caring for parents and grandparents to healthcare costs.
The education relief will now encompass all fields of study, along with tuition fees for children, while lifestyle relief will also cover subscriptions to artificial intelligence (AI) services.
Additionally, the individual tax relief limit, unchanged since 2010, will increase from RM9,000 to RM12,000. Anwar noted that these measures are designed to address the financial pressures faced by the middle-income M40 group, who are struggling with rising living costs.
In an effort to ease the tax burden, the resident individual income tax rates for chargeable incomes between RM70,000 and RM150,000 will be reduced by one percentage point. Specifically, the tax rate for incomes between RM70,000 and RM100,000 will decrease to 18%, while the rate for incomes ranging from RM100,000 to RM150,000 will drop to 24%.