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Personal income tax review for the M40s – Zainul Arifin

Budget 2027 proposes higher personal tax relief, lower income tax rates for selected middle-income earners and stamp duty exemptions for properties worth up to RM500,000, offering the M40 group long-awaited relief amid rising living costs

8:00 PM MYT

 

BUDGET 2027 is proposing a review in the personal income tax regime that will see a review in rates and reliefs for the first time in over two decades. This can be seen as the government’s attempt to answer the oft repeated question from the middle class after each year’s tabling – “What’s in it for me?”.

This is perhaps an acknowledgment to the group, which is often overlooked by various iterations of the federal government, as the focus was mainly directed at those who have less to be deserving of assistance.

It has always been said that the middle class, the so-called M40s, is often missed when help and assistance are doled out. It seems that the middle class have had the least breaks and personal handouts at the annual event.

Yet, they claimed that they are the biggest group of individual taxpayers, as the B40s are often not subjected to income tax with the minimum taxable threshold having been raised higher and higher over the years.

Anwar has proposed to increase personal relief from RM9,000 to RM12,000, the first revision since 2010, is perhaps a nod and recognition to the fact that the current rate is rather unrealistic given the rising cost of personal upkeep over the years.

He also proposed that the personal income tax rate be reduced by one percentage point to 18 per cent for those earning between RM70,000 and RM100,000 per year, while those earning between RM100,000 and RM150,000 be reduced to 24 per cent.

For the top earners however, personal income tax for those taking in over RM1million a year will be adjusted upwards to 30 per cent per year from 28 per cent, previously.

Another proposal for the M40 is exemption of stamp duty for sales and transactions of properties at less than RM500,000. For properties of up to RM750,000, the first RM500,000 will be exempted from the duty, while the remaining RM250,000 be reduced by 50 per cent. – October 9, 2026

Datuk Zainul Arifin is the Chief Executive Officer of Big Boom Media, which publishes Scoop.my

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