RM1k income tax relief for entry fees to local tourism, cultural events

BUDGET 2026 | The government will provide a special income tax exemption of up to RM1,000 to individuals who spend on entry fees at local tourism and cultural programmes next year.

Prime Minister Anwar Ibrahim, in tabling the Budget 2026, said the relief is aimed at boosting domestic tourism activities.

"To encourage domestic tourism, as many people have been crossing borders due to the strengthening of the ringgit, the government will provide a special individual income tax relief of up to RM1,000 for expenses on entrance fees to local tourist attractions and cultural programmes," he said at the Dewan Rakyat.

The incentive is part of Putrajaya's plan to attract more tourists under its Visit Malaysia 2026 (VM2026) campaign.

It is also allocating a RM700 million budget to spur tourism activities, of which RM500 million will be channelled to VM2026, and RM60 million as funds to spur promotion, marketing and the organising of tourism and cultural activities, among others.

According to Anwar, the government aims to attract up to 47 million visitors in 2026, projecting tourism revenue up to RM329 billion next year.

"... this will be a shift that promises economic benefits for small traders, tourism entrepreneurs, rural communities, craft operators, and the people as a whole," he said.

Empowering taxi drivers

Anwar also announced several initiatives for taxi drivers and the conservation of heritage buildings.

He said the government will continue the 100 percent exemption of excise duties and sales tax on the purchase of new cars from Proton and Perodua by taxi drivers and private hire car operators.

"To improve their operations efficiency and safety, HRD Corp is allocating RM10 million to cover the costs for licensed taxi drivers to participate in capacity enhancement training and their allowances," Anwar said.

According to the prime minister, Putrajaya is also expanding the Warisan KL initiative to include conservation of the Kuala Lumpur Railway Station, the Dayabumi Complex, Stadium Merdeka and Stadium Negara.

A Textile Museum will also be opened at the Merdeka 118 skyscraper next year as an effort to promote the Malay textile industry, Anwar said.

"The government is allocating an initial fund of RM5 million in a matching grant to encourage the corporate sector, philanthropists, and heritage experts to rejuvenate the National Museum.

"Cash contributions made by individuals and corporate companies to the trust account of the Museums Department will be eligible for tax deductions equivalent to the amount donated."

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