PUTRAJAYA (Oct 12): Middle-income earners (M40) are among those benefitting from Budget 2027 through an increase in the individual tax relief limit to RM12,000 from RM9,000, alongside RM100 under the Sumbangan Asas Rahmah (Sara) Madani assistance to be disbursed twice next year to eligible adult Malaysians.
Treasury secretary general Tan Sri Johan Mahmood Merican said the government's approach goes beyond providing cash assistance to low-income groups to include measures aimed at easing the financial burden on taxpayers and middle-income households.
"Under Budget 2027, the individual tax relief limit has been raised from RM9,000 to RM12,000, marking the first adjustment in over a decade. This move allows eligible taxpayers to reduce their taxable income, thereby increasing their disposable income," he said.
He said this during an online briefing session lasting about 90 minutes on current issues related to Budget 2027, organised by the Department of Information.
The scope of tax relief has also been expanded to cover postnatal care as well as children's classes or tuition in STEM (science, technology, engineering and mathematics), arts, languages and religion, subject to specified limits and conditions.
For sports-related tax relief, the scope now includes sports shoes up to RM300.
Meanwhile, lifestyle tax relief covers artificial intelligence (AI) software subscriptions, pet adoption expenses from registered centres, and registered veterinary services for animal vaccination and neutering.
Elaborating further, Johan said individuals who do not receive targeted cash aid can still benefit from tax adjustments and other government measures.
In addition, 13 million Malaysians aged 18 and above who are non-recipients of Sumbangan Tunai Rahmah (STR), including the M40 group, will receive Sara Madani assistance of RM100 twice in 2027, namely before Aidilfitri and in conjunction with the 70th National Day.
"This aid is intended to help the public cover part of their daily essential expenses," he said, adding that the government is also continuing monthly Sara assistance for STR recipients according to their eligibility categories.
On the housing sector, Johan said first-time homebuyers are eligible for a 100% stamp duty exemption for properties priced up to RM500,000.
"For properties priced above RM500,000 up to RM750,000, first-time homebuyers will enjoy a 50% stamp duty exemption on the remaining value of the property exceeding RM500,000, subject to specified conditions," he said.
He added that these measures reflect the government's approach to addressing living cost pressures through a combination of direct assistance, tax relief and homeownership support.
Last Friday, Prime Minister Datuk Seri Anwar Ibrahim, who is also the finance minister, tabled Budget 2027, themed "Reaching for the Skies, While Anchored on Our Values", with a government allocation of RM459.8 billion. This is augmented by RM25 billion in investments from government-linked investment companies (GLICs), RM11 billion in public-private investments, and RM14.2 billion in investments from federal statutory bodies and Minister of Finance (Incorporated) companies.
This brings the total value of Budget 2027, which continues an expansionary fiscal policy, to RM510 billion.
The fifth Madani Budget aims to translate resilient economic growth into tangible benefits for the public through better wages, more efficient targeted assistance, stronger fiscal discipline, and assertive moves towards higher-value industries.
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