Budget 2027 expands tax relief, fuel and electricity subsidies for M40 households
MIDDLE-income households will benefit from expanded tax reliefs, lower income tax rates and a range of subsidies under Budget 2027, as the government seeks to ease cost-of-living pressures on the M40 group. In a written reply to Datuk Adnan Abu Hassa...
Budget 2027 expands tax relief and subsidies for M40 households to ease cost-of-living pressures. The government aims to maintain assistance for middle-income households despite them not qualifying for targeted aid programmes. Key measures include increased tax relief, reduced income tax rates, expanded subsidies, and cash assistance.
Individual tax relief is raised from RM9,000 to RM12,000, while personal income tax rates decrease by one percentage point for resident taxpayers with chargeable incomes between RM70,001 and RM150,000. Tax reliefs are expanded to cover postnatal care, expenses for caring for parents and grandparents, sports shoes, tuition, and skills training.
Lifestyle relief expands to include artificial intelligence subscriptions, vaccination and pet adoption costs. The government provides two rounds of RM100 SARA MADANI assistance, benefiting up to 13 million Malaysians, including those in the M40 group. Electricity subsidy protection extends to monthly consumption of up to 800 kilowatt-hours, benefiting up to 90% of domestic users.
Back-to-school assistance rises from RM150 to RM200 per pupil, and public transport support continues through My50 monthly passes for 300,000 Prasarana users and MyKomuter50 passes for 40,000 KTM Komuter users. First-time homebuyers receive improved stamp duty exemptions, with full exemptions for homes priced up to RM500,000 and a 50% exemption on the remaining amount for homes priced between RM500,000 and RM750,000.
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