SSPN extension till 2024 comes as a relief to many

KUALA LUMPUR: The government’s decision to extend the individual income tax relief of RM8,000 for annual net savings in the National Education Savings Scheme (SSPN) until 2024 is expected to attract more people to contribute to the scheme.

Depositors welcomed the decision announced by Prime Minister Datuk Seri Anwar Ibrahim in the Senate on Wednesday, a day after Inland Revenue Board chief executive officer Datuk Dr Mohd Nizom Sairi announced the discontinuation of the SSPN tax relief from Assessment Year 2023.

One such depositor is Dr Fakharudin Abdullah Sani, 36, who said that many of his friends were unhappy and angry with the announcement of the discontinuation of the SSPN tax relief.

“Everyone, even a doctor like me, was surprised and it was a relief when the Prime Minister said the SSPN tax relief would be extended,” said the medical practitioner who contributes for his three children.

Dr Fakharudin said the SSPN tax relief should be continued even after 2024 to avoid depositors from making withdrawals.

“It’s better to continue giving the tax relief because if it is discontinued, there is a tendency for depositors to transfer their savings (in SSPN) to other investment accounts such as Amanah Saham Bumiputra (ASB) or Tabung Haji,” he added.

Government officer Haziq Hussien, 36, described the move as being in line with the Malaysia Madani concept.

“We save for the future of our children. The tax exemption will encourage more parents to save and this will indirectly bring benefits to the future generation of the country in getting quality higher education,” said the father of two.

Sharing Haziq’s views is executive officer Eka Azrin, 35, who said that the government’s decision would attract more parents to make early investments for their children’s education to benefit from the tax relief.

“With the tax relief, the money can be used to increase the amount of savings in SSPN and reduce dependence on education loans,” said the mother who contributes for her three children. — Bernama

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