KUALA LUMPUR: Some 5.16 million taxpayers will pay less tax after Budget 2027 raised personal relief from RM9,000 to RM12,000, the first revision since 2010, says Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the ministry decided to review the relief, which remained unchanged for 16 years, because the cost of living was an important issue.
"All individual taxpayers in the country, about 5.16 million people, will receive the increase in personal relief.
"This means the tax imposed on them will be reduced," he told a press conference after Prime Minister Datuk Seri Anwar Ibrahim tabled the Budget in the Dewan Rakyat on Friday (Oct 9).
Amir Hamzah said the M40 group had also benefitted from the targeted Budi95 and diesel subsidies, which had reduced leakages to foreign buyers and smuggling.
"We have to understand that the M40 also gets a lot of benefits from the government," he said.
He added that some aid was given regardless of income group.
"When we give assistance to schoolchildren, we do not differentiate between M40, T20 and B40, because it is about helping our children," he said.
When announcing Budget 2027, Anwar, who is also Finance Minister, said the individual income tax relief limit has been raised to RM12,000 from the previous rate of RM9,000, which was last reviewed in 2010.
Anwar also said the resident individual income tax rate had also been reduced by one percentage point.
