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KUALA LUMPUR: Dewan Rakyat passed the Finance Bill 2020 that provides various tax breaks to cushion the impact of Covid-19, as provided in the 2021 Budget.
The bill, which was introduced by II Deputy Finance Minister Mohd Shahar Abdullah, seeks to amend several existing laws, such as the Income Tax Law, to provide higher tax deductions for those taking retraining courses and for the purchase of smartphones and computers, as well as for Covid-19 vaccines.
In his closing speech, Shahar dismissed allegations that the amendments would give certain lawmakers an advantage, including former Prime Minister Datuk Seri Najib Razak (BN-Pekan), who is currently on trial on tax-related charges.
“This is the kind of perception that is currently being created to confuse the rakyat.
“Earlier, I mentioned in my speech, the amendments follow the approval of the Budget 2021. It involves the welfare of the people and introducing new approaches to collecting taxes without introducing new taxes.
“It is totally false to say that it aims to help certain people.
“All these unrelated issues are taken out of context; we are doing this solely for the rakyat,” he told Dewan Rakyat on Wednesday (December 16).
RSN Rayer (PH-Jelutong) had asked whether the amendments would bring any benefit to the rakyat or would simply be an additional advantage for Najib, who faces tax-related court cases.
“I just want a simple explanation and I am not trying to play politics. I can see that you are also close to Pekan. I am only questioning on behalf of the people,” he said.
To this, Shahar said that “whoever needs to pay taxes, will have to pay their tax. However, it is based on the decision made by the courts.”
“I’ve said before, why are you raising this issue out of context? The amendments have taken into account the impact of Covid-19, including on vaccines, scaling up and tourism,” he argued.
Under Section 46 (1) (f), those taking any refresher tertiary courses, including those related to master’s or doctoral degrees, will be eligible for deductions of between RM1,000 and RM7,000 for the evaluation periods 2021 and 2022.
Those who obtain the vaccines for themselves, spouses or children will be entitled to a tax deduction of RM1,000 in accordance with Section 46 (1) (g) for the evaluation years 2021 and 2022.
This covers vaccines such as pneumococcal, human papillomavirus (HPV), influenza, rotavirus, and Covid-19.
Deductions for medical expenses for serious illnesses also increased from RM6,000 to RM8,000.
RM2,500 tax exemptions are also provided under Section 46 (1) (p) for the purchase of personal computers, smartphones or tablets for personal use made between June 1 and December 31 of this year.
Sports enthusiasts will also get a tax break of up to RM500 for purchasing sports equipment between 2021 and 2022.
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