Budget 2026: Tax Relief Of Up To RM1,000 For Domestic Tourism

Budget 2026

Samuel Chua

10th October 2025 - 2 min read

Prime Minister Datuk Seri Anwar Ibrahim has announced that Malaysians will be able to enjoy a special income tax relief of up to RM1,000 in 2026 when they travel locally during Visit Malaysia Year 2026. The measure, introduced under Belanjawan MADANI 2026, aims to encourage Malaysians to explore domestic destinations while supporting local tourism and cultural industries.

Encouraging Malaysians To Travel Locally

Anwar, who is also Finance Minister, said the tax relief will cover spending on entrance fees to local tourist attractions and cultural programmes. This initiative is designed to boost domestic tourism activity, supporting small businesses, accommodation providers, and community-based operators across Malaysia.

The government has set an ambitious target of 47 million visitors and RM329 billion in tourism revenue during Visit Malaysia Year 2026, highlighting tourism’s important role in driving economic growth and job creation.

Supporting Local Businesses And Cultural Heritage

In addition to promoting travel, the tax relief also encourages Malaysians to participate in cultural and heritage experiences. Visitors to museums, cultural centres, performances, and nature parks will be able to claim eligible expenses under this incentive when filing their tax returns.

By promoting domestic travel, the initiative helps sustain tourism-dependent communities while deepening appreciation for Malaysia’s cultural diversity and natural heritage.

A Practical Incentive For Households

For households planning their 2026 holidays, this tax relief offers a meaningful way to reduce travel costs while contributing to local economic recovery. It reflects the government’s ongoing commitment under Belanjawan MADANI to support inclusive growth that benefits both consumers and local communities.

Stay tuned for more updates from Budget 2026.

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