RM8,000 tax relief for SSPN contributors after Parliament approves amendments

KUALA LUMPUR: Amendments to provide RM8,000 tax relief to National Education Savings Scheme (SSPN) depositors have been approved by the Dewan Rakyat on Monday (April 3).

The amendments were made via the tabling of the Finance Bill 2023 by Deputy Finance Minister Steven Sim.

During the second reading of the Bill, Sim said the decision to provide tax relief for SSPN depositors was made after hearing views of MPs and the public.

“In conclusion, the government listens to the views of the people and MPs, including the Opposition, and we will extend the income tax relief for SSPN contributors till 2024," he said, adding that there were proposals to extend the tax relief beyond that.

“Next year, we will look into this policy again and we will take into account the views of all, including the Opposition,” he added.

The Finance Bill 2023 was also tabled to amend the Income Tax Act 1967, the Stamp Act 1949, the Petroleum Act (Income Tax) 1967, the Real Property Gains Tax 1976, and the Finance Act 2018.

Sim also said studies were ongoing regarding the proposed luxury goods tax and the capital gains tax on disposal of unlisted shares.

“Studies and engagement sessions with all stakeholders will ensure the proposal can be implemented smoothly,” added Sim.

The amendments made to the Finance Bill 2023 on Monday were in line with assurances by Prime Minister Datuk Seri Anwar Ibrahim that tax relief for SSPN deposits would be given until next year.

The announcement came following a call by Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) to extend the tax relief.

Dr Wee had said many parents were concerned that the tax relief would be discontinued this year following an announcement by Sim on March 27.