by DayakDaily Team
KUCHING, Oct 10: With the rising cost of vaccines and healthcare services, the government has proposed broader tax reliefs under Budget 2026 to help ease the rakyat’s financial burden.
These measures include widening tax exemption coverage for insurance, extending tax exemptions on medications, and offering tax exemptions to private hospitals that establish Hospital Welfare Funds to assist low-income patients.
In tabling Budget 2026, Prime Minister Datuk Seri Anwar Ibrahim said, “Health services require a holistic policy and approach in resolving all the complexities that bind them. The 13th Malaysian Plan has emphasised the need for comprehensive health reforms guided by the four pillars of the Health White Paper.
“This reform is important to build full integration between the public and private sectors, with the aim of ensuring access to quality, equitable and affordable health services for the benefit of citizens.”
To encourage insurance and takaful participation, the government has proposed to extend the individual income tax relief of up to RM3,000 for life insurance premium payments or life takaful contributions, currently available for oneself and spouse, to also cover children.
Additionally, it also proposed the full stamp duty exemption on insurance policies and small-value takaful certificates purchased by individuals and SMEs to be extended for three years until 2028. The same three-year extension applies to Perlindungan Tenang insurance and takaful products.
The government and industry will also jointly provide RM60 million to introduce affordable basic insurance products and implement a Diagnosis Related Group (DRG) system.
To further support private hospitals in assisting lower-income patients, these hospitals will be allowed to set up Hospital Welfare Funds. Income received by such funds are expected to be tax-exempt, and donours contributing to the funds could also enjoy tax deductions.
The government also proposes to allow Employees Provident Fund (EPF) contributors to use their Sejahtera Account savings to subscribe to basic insurance plans or medical and health takaful (MHIT) products.
To make vaccinations more accessible, under Budget 2026, individual income tax relief for vaccination expenses are expected to be expanded to cover all vaccine types registered and approved by the Ministry of Health. – DayakDaily
