Industry seeks tax exemption for group worker insurance schemes

The Life Insurance Association of Malaysia (LIAM) has submitted a formal proposal to exempt group worker insurance schemes from taxation as part of budget deliberations for 2027. The association argues that such an exemption would make employee insurance benefits more affordable and accessible across the workforce. Under the current tax framework, premiums paid for group insurance coverage are subject to taxation, which industry leaders say adds to the overall cost burden for employers seeking to provide comprehensive employee protection. LIAM contends that removing the tax obligation would enable companies of all sizes to more readily offer insurance coverage to their workers without significant financial strain. The proposal reflects growing industry advocacy for policy measures that could strengthen employee welfare provisions while reducing administrative costs for businesses. The association's submission comes as the government prepares its annual budget framework and considers various incentives to support workforce development and corporate social responsibility initiatives.