KUALA LUMPUR: The 2027 Budget's personal tax relief measures are expected to provide additional financial breathing room for middle-income earners (M40), while targeted incentives for businesses and investors could support investment growth, according to PwC Malaysia.
Its tax partner Michelle Chuo said the increase in personal tax relief from RM9,000 to RM12,000, the first adjustment since 2010, was timely amid continued cost-of-living pressures.
She said the higher relief, together with the one-percentage-point reduction in income tax rates for the M40, would provide additional disposable income for taxpayers in the group.
"Against the backdrop of continued cost of living pressures, the personal tax measures announced in 2027 Budget are a welcome move, particularly for the M40," she told Bernama in response to the 2027 Budget tabled by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim on Friday.
