LIAM's wish list for Budget

LIAM has listed down the following that it would like to see in the coming Budget:

• Incentives to promote financial planning
• Separate tax relief of RM6,000 for life insurance premium (rather than combined with EPF contributions)
• Tax relief for child education and medical policies to increase from RM3,000 to RM6,000
• Establishment of private pension schemes

Source: Business Times

LIAM Calls for Tax Incentives in Budget

Life Insurance Association of Malaysia (LIAM) has called for the following additional tax incentives, to be announced in Budget 2009 today:

• Separate the tax relief of RM6,000 that is currently given to approved fund contributions and insurance premiums, so that each will be entilted to RM6,000. This mirrors the call by MIT.
• Increase the existing RM3,000 tax relief on education and medical insurance to RM6,000.
• Remove the 8% tax on investment earnings that is currently imposed on life insurance funds.
• Provide tax incentives for establishment of private pension schemes.

Meanwhile CIMB Aviva Takaful calls for life insurance and takaful contributions to be tax-exempt up to RM10,000 and education and medical insurance premiums to enjoy RM5,000 tax relief.

Source: Business Times

MIT Calls for Separate Tax Relief for Premium

The Malaysian Institute of Taxation has called for separate tax relief of RM6,000 each for life insurance premium and contributions to approved schemes in the coming Budget 2009.

Currently, individual tax payers are allowed a maximum tax relief of RM6,000 for combined contributions to approved schemes and life insurance premium. For someone who earns more than RM4,545 a month, the EPF contributions alone would have exceeded RM6,000 per year, leaving no more tax relief to be claimed on the life insurance premium.

Source: The Star