KUALA LUMPUR, Oct 9 — Malaysians are expected to be able to have up to RM1,600 in extra disposable income, as they will get higher tax relief and lower tax rates, Prime Minister Datuk Seri Anwar Ibrahim said today in his Budget 2027 speech.
Anwar today listed multiple tax measures that would benefit Malaysians, especially the middle class or M40 group.
"This means that the increase in tax relief and reduction in individual tax rate will give additional disposable income of up to RM1,600 to around five million taxpayers," he said in his speech.
The tax measures include increasing individual tax relief from the old figure of RM9,000 to RM12,000; and reducing income tax rate of those residing in Malaysia by one percentage point.
Anwar also announced that the federal government would expand individual tax relief to cover more expenditure categories, including covering post-delivery care services, care expenditure for parents and grandparents, tuition for children, the purchase of sport shoes, artificial intelligence (AI) subscriptions and vaccination costs.
The government will also adjust the tax rate to 30 per cent for those with more than RM1 million in income.
