No plans to review tax relief for life insurance, personal income - PM

Prime Minister Anwar Ibrahim said the government has no plans to review tax relief rates on life insurance policies and personal income tax.

He said this in a parliamentary written reply to Ayer Hitam MP Wee Ka Siong.

Wee, who is a former transport minister, had asked Anwar if the government had any plans to review the existing personal income tax relief and life insurance policy relief, currently at RM9,000 and RM3,000, respectively.

He pointed out that the amount had not been reviewed for 15 years, adding that it no longer reflects the current cost of living.

Anwar, who is also the finance minister, responded that the government is focused on broadening other tax relief measures, specifically for individual taxpayers, through a more targeted and sustainable approach.

“Under Budget 2023, 2024, and 2025, for example, we have raised the tax relief amount for medical expenses, childcare costs, care for disabled individuals, alongside education and health insurance.

“And we expanded the relief to cover medical care for parents and grandparents, which includes the purchase of personal medical kits and disease tests.

“The government has also raised the tax relief amount for education and medical insurance from up to RM3,000 to RM4,000,” he said.

Under Budget 2025, Anwar said the government had also provided tax reliefs on interest payments on housing loans.

First-time homeowners purchasing a home worth RM500,000 are eligible for up to RM7,000 in tax relief, while those purchasing a home worth RM700,000 will get a relief of up to RM5,000.

This policy, he added, began on Jan 1 and will end on Dec 31, 2027.

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