PETALING JAYA: The personal income tax relief system should be simplified as the current filing process is getting more complicated and disconnected from everyday household realities, say tax professionals.
They said many Malaysians have to deal with a growing list of small, specific tax deductions that are difficult to understand and even harder to apply, making tax filing stressful and inefficient for ordinary taxpayers.
Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) treasurer-general Datuk Koong Lin Loong called for the current system of multiple itemised deductions to be replaced with a single, higher basic personal tax relief.
“There are too many small and niche tax deductions that look good on paper but are not practical for most people,” he said.
Koong cited examples such as deductions for food waste disposal machines or EV charging ports.
“Instead of introducing more small reliefs, the government should consolidate them into a higher basic tax relief for individuals and dependants.
“This would make tax filing easier and give people more freedom to decide how to manage their money,” he said in an interview yesterday.
Koong said future tax reforms should focus on increasing disposable income and easing financial pressure on households, rather than tying tax relief to specific products or activities.
“Even if taxpayers do not spend on specific items, the increase in disposable income would still support overall economic well-being, making the system simpler, fairer and more effective.
“Micro enterprises will also benefit from this change as most of them file their tax as personal income tax, giving them more disposable income,” he said.
Thannees Tax Consulting Services managing director SM Thanneermalai proposed a similar approach, suggesting that complex itemised claims be replaced with simpler standard deductions.
“For example, people with rental income currently have to separately claim multiple expenses such as quit rent, repairs, maintenance and agent fees.
“Instead, they could be given a standard deduction based on the value of their property, making the process much simpler and reducing paperwork,” he said, noting that similar fixed deductions could be introduced for insurance, EPF and other investment savings.
Thanneermalai said this approach would reduce the administrative burden on both taxpayers and tax authorities, minimise audits and cut down the need for long-term record keeping, while still allowing taxpayers to opt for itemised claims if needed.
Tax lawyer S. Saravana Kumar said any simplified system should also adjust exemption thresholds over time to reflect inflation and income growth, so that tax relief does not lose its value as living costs rise.
Tax measures, he said, should be supported by targeted assistance for low-income households, including support for essential needs such as childcare, healthcare and education.
