KUALA LUMPUR: The Dewan Rakyat today passed the Finance Bill 2020 which among others, seeks to amend some existing laws such as the Income Tax Act to provide higher tax deductions for those pursuing reskilling courses.
The bill will also provide tax breaks for those purchasing smartphones and computers as well as for Covid-19 vaccinations, according to Deputy Finance Minister II Mohd Shahar Abdullah who tabled the bill.
The bill provides that those obtaining vaccinations for themselves, spouses or children will be entitled to a RM1,000 tax deduction under Section 46(1)(g) for the assessment years of 2021 and 2022.
This will also include vaccinations such as pneumococcal, human papillomavirus (HPV), influenza, rotavirus and Covid-19.
At the same time, deductions on medical expenses for serious diseases are also increased from RM6,000 to RM8,000.
Under Section 46(1)(f) of the bill, those pursuing up-skilling tertiary courses will be eligible for deductions of between RM1,000 and RM7,000 for the assessment periods 2021 and 2022.
Also provided are tax breaks of RM2,500 under Section 46(1)(p) for the purchase of personal computers, smartphones or tablets for personal use made between June 1 and Dec 31 this year.
Aside from that, sports enthusiasts will also get a tax relief of up to RM500 for purchasing sports equipment between 2021 and 2022.
In his winding-up speech today, Shahar responded to claims that the amendments would give an advantage to some members of parliament such as former premier Datuk Seri Najib Razak (Barisan Nasional-Pekan), who is currently under trial for multiple charges.
"This is the kind of perception that is currently being created to confuse the public. Earlier, I mentioned in my speech, the amendments follow the passing of Budget 2021.
"It involves the welfare of the people and to introduce new approaches to collecting taxes without introducing new taxes. It is false to say that it is aimed at helping certain individuals," he told the House today in response to RSN Rayer (Pakatan Harapan-Jelutong).
Rayer had asked if the amendments would bring any benefit to the people or just be an extra advantage to Najib.
On July 22, the High Court here ordered Najib to pay the government, through the Inland Revenue Board (IRB), RM1.69 billion in additional taxes and penalties.
This was after the Pakatan Harapan government filed a suit against Najib on June 25 last year asking him to pay RM1.69 billion in unpaid taxes for the period between 2011 and 2017 with interest at 5 per cent a year, as well as costs and other relief deemed fit by the court.
Najib subsequently filed an appeal against the summary judgement and has yet to make any payments to date.