In a statement yesterday, LIAM said its wishlist for 2016 Budget was for the change so that it would promote financial planning and create awareness on the importance of financial protection among the rakyat.
LIAM president Toi See Jong said at the moment, RM6,000 tax relief on combined EPF and life insurance premiums was given to the rakyat.
“With rising wage level, the EPF contributions have taken up a substantial portion of the RM6,000, leaving an ever-diminishing amount left to be claimed as tax relief on insurance premiums,” he said in the statement.
The EPF savings served the purpose of meeting long-term savings needs whereas life insurance primarily for the financial protection with a secondary aim of long-term savings, he said.
Toi said a separate tax relief would put more money back into the rakyat’s pocket to relieve them off their financial burden and also to encourage them to have a better financial plan in the future. — Bernama
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