More taxpayers can maximise their claims, say experts
Tax consultants are analyzing the expanded lifestyle tax relief in Budget 2027, which now includes AI subscriptions and pet-related expenses. While the move is seen as more inclusive, experts note that the RM2,500 annual ceiling may limit the actual financial benefit for taxpayers who already maximize their claims.
Why it matters
The policy change reflects government efforts to incentivize technology adoption while balancing fiscal constraints for individual taxpayers.
PETALING JAYA: Tax consultants see both opportunities and limitations in the expanded lifestyle tax relief under Budget 2027, with broader eligibility expected to help more taxpayers maximise their claims even as the unchanged RM2,500 ceiling limits additional savings for others.
While the inclusion of artificial intelligence (AI) subscriptions and pet-related expenses could benefit those who have yet to fully utilise their allowances, they said taxpayers already claiming the maximum amount may see little difference.
They said the expansion reflects changing spending habits, although benefits would depend on individual circumstances.
Tratax executive director Thenesh Kannaa said the government’s approach was more inclusive as more taxpayers could make full use of the RM2,500 relief.
He cited an individual paying RM120 monthly for broadband, amounting to RM1,440 annually, who would previously have been unable to exhaust the allowance without other qualifying purchases.
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