Budget 2027: Tax breaks to encourage corporate support for food bank initiative, says Armizan

KOTA KINABALU, Oct 11 — The Government of Malaysia has announced a special tax deduction incentive under Budget 2027 to boost participation in the Ihsan Food Bank Initiative (i-FB) from corporate partners and other stakeholders. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali revealed that the government has agreed to grant tax deductions to entities contributing food and equipment to the i-FB initiative, starting from January 1, 2028, to December 31, 2030.

Armizan expressed gratitude towards Prime Minister Datuk Seri Anwar Ibrahim and the Finance Ministry for endorsing their proposal to bolster the i-FB initiative, which is part of 44 tax incentive measures unveiled in Budget 2027. According to Armizan, the tax incentive is designed to recognize and encourage greater involvement of strategic partners, such as corporations and non-governmental organizations, in contributing food, equipment, and operational support to strengthen the i-FB ecosystem.

The precise implementation mechanism for the special tax deduction will be coordinated with the Finance Ministry. Armizan emphasized that by collaborating with partners, including the corporate sector and voluntary organizations, the i-FB initiative can collectively alleviate the cost-of-living burden on those in need, rescue surplus food from waste, and protect the environment.

During a press conference, Armizan also introduced i-FB grants to the UMS Student Consumer Movement, which will manage the initiative at educational institutions and within local communities. The initial grants will be utilized to furnish campuses with essential equipment and dedicated i-FB spaces for receiving, storing, and distributing donated food to students in need.

Armizan highlighted that this initiative provides opportunities for various parties to contribute towards easing the cost-of-living challenges faced by students. The i-FB initiative is one of the nationwide measures aimed at addressing the cost-of-living crisis, with the Cost of Living Division of the Ministry of Domestic Trade and Cost of Living serving as its secretariat.

The initiative seeks to garner participation from government agencies, the private sector, non-governmental organizations, and individuals.