MIDDLE-income households will benefit from expanded tax reliefs, lower income tax rates and a range of subsidies under Budget 2027, as the government seeks to ease cost-of-living pressures on the M40 group.
In a written reply to Datuk Adnan Abu Hassan (BN-Kuala Pilah) in the Dewan Rakyat today, Deputy Finance Minister Liew Chin Tong said the measures were intended to ensure middle-income households continued to benefit from government assistance despite not qualifying for some targeted aid programmes.
Among the key measures is an increase in individual tax relief from RM9,000 to RM12,000, alongside a one-percentage-point reduction in personal income tax rates for resident taxpayers with chargeable incomes between RM70,001 and RM150,000.
“The tax rate for the RM70,001 to RM100,000 income bracket will be reduced to 18 per cent, while the rate for the RM100,001 to RM150,000 bracket will fall to 24 per cent," Liew said, adding, tax reliefs will also be expanded to cover postnatal care, a wider range of expenses for caring for parents and grandparents, sports shoes, tuition for children, all fields of study and skills training.
He added lifestyle relief will be extended to include artificial intelligence subscriptions, as well as vaccination and adoption costs for pets adopted from registered centres.
The government will also provide two rounds of RM100 SARA MADANI assistance — before Hari Raya Aidilfitri and ahead of the country’s 70th National Day celebrations — expected to benefit up to 13 million Malaysians, including those in the M40 group.
Electricity subsidy protection will be extended to monthly consumption of up to 800 kilowatt-hours, benefiting up to 90 per cent of domestic users, Liew said.
Liew explained that under BUDI MADANI, eligible individuals will receive a basic allowance of up to 300 litres a month that can be used flexibly for subsidised RON95 petrol or diesel. Eligible private diesel jeep and pickup owners will receive an additional 100 litres monthly.
Based on fuel prices from Oct 15 to 21, the ministry said using the full 300-litre RON95 allocation would provide an estimated monthly subsidy benefit of RM789 per person. Eligible recipients using 400 litres of diesel would receive an estimated subsidy benefit of RM1,228.
The allocation for Jualan Rahmah MADANI and Jualan Agro MADANI will be increased to RM750 million, with 35,000 programmes targeted.
Back-to-school assistance will rise from RM150 to RM200 per pupil, regardless of income group, to help families meet essential schooling costs.
Public transport support will also continue through the My50 monthly pass for 300,000 Prasarana bus and rail users in the Klang Valley. The MyKomuter50 pass will benefit 40,000 KTM Komuter users, with average savings of up to RM160 a month.
For first-time homebuyers, the government has proposed improvements to stamp duty exemptions. Buyers of homes priced up to RM500,000 would receive full exemptions on loan agreements and transfer instruments.
For homes priced above RM500,000 and up to RM750,000, full exemptions would apply to the first RM500,000, with a 50 per cent exemption on the remaining amount.
Liew added that the measures had reflected the government’s commitment to ensuring that middle-income households remained included in the benefits of its economic assistance programmes. -October 19, 2026