28th March 2023 - 2 min read
The chief executive officer of the Inland Revenue Board (LHDN), Datuk Dr Mohd Nizom Sairi has said that taxpayers can approach the government to bring up their dissatisfaction with the decision to discontinue the National Education Savings Scheme (SSPN) tax relief.
“I feel the people and taxpayers themselves can voice out to the government that they want a review of the decision. On our part, we convey the feedback from the people to the government. This is to ensure the policies (implemented) have their fingers on the pulse of the people,” said Datuk Dr Nizom, adding that such decisions are made at the policy level by the government, and LHDN is primarily responsible for implementing them.
For context, the SSPN tax relief has been provided over the past few years to encourage parents to save for their children’s education; it was initially capped at RM6,000, but was then raised to RM8,000 under Budget 2019. However, it was not extended under the revised Budget 2023.
Deputy Finance Minister II, Steven Sim subsequently came forward to explain that the government had decided to discontinue to SSPN tax relief because several other tax exemptions and deductions have already been introduced under the revised national budget. These included a 2% cut in the individual income tax rate for selected income brackets and an increase in tax relief for medical expenses. The National Higher Education Fund Corporation (PTPTN) also reintroduced a repayment discount of up to 20%, and a loan repayment moratorium for those earning less than RM1,800.
(Source: New Straits Times)
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