KUALA LUMPUR, Oct 9 — The service tax rate for elderly care services will be reduced from eight to six per cent, starting January 1, 2027.
A full exemption will also be granted on care fees up to RM96,000 a year.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim made the announcement while tabling Budget 2027 at the Dewan Rakyat today.
Anwar said the government will also increase financial aid for senior citizens to RM1.3 billion next year, benefiting nearly 200,000 recipients.
“The government will also draft a Senior Citizens Bill to tackle neglect (of the elderly) and strengthen the care ecosystem as a whole,” he said.
“More than 40 million ringgit will also be allocated to HRD Corp to train 8,000 people in the elderly care sector and open job opportunities for them,” he added.
Two National Integrated Care Centres of Excellence (NICE) will also be developed in Penang and Sarawak to support training, research and elderly care, Anwar said.
On a related development, Anwar said Employees Provident Fund (EPF) members aged 55 and 60 can opt for monthly withdrawals under i-Emas so that their remaining savings can continue generating dividends.
