KUALA LUMPUR: The Malaysian Takaful Association (MTA) hopes the government will increase tax relief for life, education and medical insurance premiums in Budget 2025.
The association said the tax relief will help ease consumer burden after the huge rise in insurance premiums in recent years.
"MTA hopes the government can increase relief for insurance-related premiums, currently (set) at RM3,000 for life insurance and RM3,000 for education and medical insurance.
"This is especially true for medical insurance which saw huge increases in premium in recent years," MTA told Bernama.
The association said medical repricing in Malaysia is a complex challenge, with significant implications for healthcare costs, takaful coverage, and consumer access to medical services.
It said the industry is also grappling with inflationary pressures and market volatility this year, adding that the rise in the service tax rate to eight per cent on March 1, 2024 from the previous six per cent has further increased costs for group takaful and insurance products.
Hence, it has suggested that the government provide additional tax relief or tax incentives to companies or employers contributing, or paying premiums for group employee benefit schemes.
"It will help ease the financial burden on companies and business owners (and ensure they) continue to provide employer coverage benefits," the association said.
Meanwhile, the MTA also proposed a personal income tax relief or rebate for customers who purchase a takaful scheme for charity or donation purposes.
The main objective is to promote society's well-being among individuals who want to contribute to a takaful scheme with value-added features that include charitable purposes, it said.