Budget 2027 Tax Measures To Benefit Lower- And Middle-income Earners - MIA

KUALA LUMPUR, Oct 10 (Bernama) -- Budget 2027’s tax measures provide greater support to lower- and middle-income earners, according to the Malaysian Institute of Accountants (MIA).

Its vice-president, Ahmad Syahazan Yaacob, said the adjustments to individual income tax bands and personal tax reliefs under Budget 2027 take into account rising living costs and household commitments.

“These measures can help improve tax fairness and provide greater support to taxpayers, particularly those in the lower- and middle-income groups.

“Their inclusion in Budget 2027 underscores the value of constructive engagement between the profession and policymakers,” he said in a statement.

MIA is the statutory body responsible for developing and regulating the accountancy profession in Malaysia under the Accountants Act 1967.

Under Budget 2027, the tax rate for chargeable income between RM70,001 and RM100,000 will be reduced to 18 per cent, while a new tax band of 24 per cent will apply to chargeable income between RM100,001 and RM150,000.

The personal tax relief limit will also be increased from RM9,000 to RM12,000, while individuals with chargeable income exceeding RM1 million will be taxed at 30 per cent.

Meanwhile, MIA said that beyond taxation, Budget 2027 also reinforces the government’s emphasis on governance and accountability in public financial management.

“Measures to ensure that loan repayments and related interest income collected by Federal Statutory Bodies are used solely for approved purposes would reinforce accountability in public financial management.

“The proposed Government-Owned Entities Bill would strengthen oversight of government-linked companies and statutory bodies, ensuring clear accountability and effective oversight in the management of public resources,” it said. 

MIA also said Budget 2027 places strong emphasis on the resilience and well-being of small and medium enterprises (SMEs).

The SME-focused measures under Budget 2027, including tax incentives, financing and guarantee facilities, capital-raising opportunities, digitalisation and artificial intelligence adoption, export development and sustainability incentives, have significant implications for the accountancy profession, it added.

Other measures welcomed by MIA include Budget 2027's initiatives on sustainability, Islamic finance, talent development and education, as well as digital transformation. 

-- BERNAMA