Malaysia Rules Out Levying Windfall Tax on Businesses, For Now
Malaysia Rules Out Levying Windfall Tax on Businesses, For Now
(Bloomberg) -- Malaysia for the time being does not intend to impose a windfall profit levy on glovemakers or other businesses whose profits grew manifold during the global health crisis, said Finance Minister Zafrul Abdul Aziz.
Such a tax would require levying profits that exceed a certain threshold, said Zafrul in a written parliamentary reply Wednesday. It would be difficult for the government to determine a uniform market price for consumer goods or locally manufactured products given the varied types, standards, specifications and grades, he said.
Zafrul was responding to opposition lawmaker Syed Saddiq Abdul Rahman, who had asked that the government commit to studying such a tax to help fund the nation’s recovery. The former minister had highlighted glovemakers in his question to Zafrul.
“Although not subject to the windfall profit levy, the rubber gloves manufacturing industry contributed to spillover effects to the national economy in terms of direct and indirect taxes, in particular increased corporate income tax, while providing job opportunities throughout the Covid crisis,” said Zafrul.
“The additional profit earned by the rubber gloves industry during the pandemic can also be used by industry to re-invest and encourage investors to further expand their business in this country,” he added.
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