SOME people are in two minds about the news that the income tax relief for education and medical insurance premium payments would be increased to RM4,000.Karen Loh, a mother of two, said the relief for education insurance isn’t much in view of the escalating expenses and costs charged by private institutions.
The chief executive officer of a sporting events management company said her eldest son is now working but she is still paying the yearly education insurance premium amounting to RM2,800 for her younger son, 18.
“The relief is not substantial, but it is better than nothing,” said Loh, 55.
Zafrullah Ismail, 47, who pays RM2,000 monthly in total for the education insurance premiums for two of his three children, shared her view.
“By right, premium payments for education insurance should be fully tax-exempted. However, increasing the relief amount is a good start.”
The green tech company chief executive argued that education insurance is an investment in the country’s human capital.
“This should have been recognised and implemented right from the start,” he added.
Zafrullah, who has signed up for medical insurance for his whole family, said a more indepth study should be done on the escalating costs of medical fees.
“Diseases like cancer are very expensive to treat, so in addition to relief and exemptions, the government should also consider setting up a micro medical insurance scheme for either EPF (Employees Provident Fund) or Socso (Social Welfare Organisation) contributors.
“That would ensure everyone has a medical safety net,” he said.
