Budget 2026: Malaysians Can Claim Income Tax Relief of Up to RM1,000 for Domestic Tourism

In today’s Budget 2026 presentation (10 October) by Prime Minister Dato Seri Anwar Ibrahim in Parliament, he announced that the government is allocating more than RM700 million in an effort to boost the tourism sector for Visit Malaysia Year 2026.

Here is a breakdown of how the RM700 million allocation will be spent:

• RM500 million for the Visit Malaysia Year 2026 campaign
• RM60 million for the promotion, marketing and organising of tourism events and cultural activities
• RM50 million to support art and heritage entrepreneurs
• RM50 million grant to promote charter flights to Malaysia
• RM25 million to improve tourism facilities, including for the conservation of UNESCO sites
• RM20 million for health-based tourism programmes by the Malaysian Health Tourism Council

Moreover, in conjunction with Visit Malaysia Year 2026, the government also intends to provide tax incentives for the tourism and cultural sector, including:

• Tourism project entrepreneurs who carry out renovation of business premises will be given tax deductions for qualified expenses, limited to up to RM500,000
• Tourism companies will be given an income tax exemption, equal to 100% of the value of the increased income from tourism packages to Malaysia
• Companies and associations that organise International trade conferences or exhibitions will be given an income tax exemption of 100% of the statutory income
• Companies that organise arts, cultural and tourism activities, as well as international sports and recreational competitions involving foreign participants, will be given an income tax exemption of 50% of the statutory income

To encourage Malaysians to travel within the country, a special income tax relief of up to RM1,000 will be given to individuals for expenses related to entrance fees for local tourist centres and cultural programs.

Do stay tuned for more updates. 

Also read: Budget 2026: Prices of Cigarettes to Increase by 2 Sen per Stick, Cigars RM40 per kg Starting Nov 2025