The Ministry of Youth and Sports (KBS) has proposed the introduction of a special tax relief incentive for the purchase of sports equipment and parents’ investment for their children in sports under Budget 2021. The upcoming national budget is slated to be tabled in November 2020.
According to minister Datuk Seri Reezal Merican Naina Merican, the proposal was one of several suggestions submitted to the Ministry of Finance for consideration, with the aim of encouraging the public to do sports. Ultimately, it is expected to invigorate the sporting ecosystem in the country.
“In the past, there was a lifestyle tax relief which included everything, which means even buying equipment such as computers (is included as well as sports equipment). We are requesting for a dedicated tax relief incentive for those who buy sports equipment,” Datuk Seri Reezal clarified.
Datuk Seri Reezal also emphasised that most Malaysians are now more conscious about the benefits of doing sports, with regard to both themselves and to their children. As such, they will be willing to spend on sports products and services.
At present, Malaysia does not have a dedicated tax relief incentive intended for sports-related expenses. Instead, they can claim tax relief for sports equipment (as well as gym memberships) under a broad category of lifestyle purchases. This category also allows you to claim for an assortment of other purchases, including reading materials, personal computers and devices, as well as home Internet subscriptions. The total claimable amount for these expenses is currently set at RM2,500.
(Source: Malay Mail)