NGO moots tax relief for paying parents’ housing costs

A housing advocacy group has advocated for the Malaysian government to introduce a special tax relief for children who pay their parents' housing expenses, particularly as many older adults live on a fixed income and may struggle financially. The Centre for Community and Housing Development (REACH) suggested the relief should be a distinct category from current tax deductions for medical and care expenses for parents, with a reasonable annual cap.

REACH coordinator Iskandar Abdul Samad stated that numerous taxpayers pay a portion or the entirety of their parents' rent or housing loan installments, especially when parents retire and no longer have a stable income. These costs, compounded by the escalating cost of living, can create financial strains for children who also have responsibilities in their own households.

Despite this, parents continue to depend on their children's support to ensure they have a comfortable and secure living environment, according to Iskandar.

The proposal aligns with the government's objectives to enhance the welfare of senior citizens, as outlined in the 2027 budget. REACH proposes the tax relief be based on actual payments, requiring supporting documents such as rental agreements, housing loan statements, or proof of payments to prevent potential misuse.