KUALA LUMPUR, Oct 12 — The government proposes expanding the scope of individual income tax relief for lifestyle to include pet care expenses, such as vaccinations and sterilisation treatments by registered veterinary services.

In the Budget 2027 tax measures document, the Ministry of Finance (MoF) said the expansion would also cover the costs of adopting a rescued pet from a registered animal shelter.

The proposal aims to cultivate kindness and empathy toward animals in need of care.

MoF said the personal income tax relief cap for lifestyle remains at RM2,500, including the proposed expansion.

Additionally, to promote digital literacy and the use of artificial intelligence (AI) technology to boost productivity and drive innovation, the scope of the personal income tax relief for lifestyle is proposed to be expanded to include subscription costs for AI software and applications for personal use, spouses, or children.

Currently, beginning with the 2024 assessment year, the personal income tax relief for lifestyle is limited to RM2,500 and covers the purchase of reading materials, including e-books and daily newspapers in print/electronic form, as well as personal computers, smartphones, or tablets, and internet subscriptions. — Bernama