THE Government has no plans to impose the Windfall Tax across all sectors that are enjoying extraordinary profits during the pandemic crisis.
“For now, it is only imposed on the commodity sector such as palm oil. Any decision to broaden the scope of the Windfall Tax requires extensive study.
“If we expand it without proper deliberation, investors may think that the Government is taking advantage of the situation,” Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said, at the Dewan Rakyat today.
Since the COVID-19 crisis began, many quarters have argued that it was time to broaden the reach of the Windfall Tax to include glove makers, who had enjoyed extraordinary profits due to spike in demand for personal protective equipment (PPE) globally.
However, experts have also warned that such a move may spook investors, who will eventually take their investments to other countries.
Echoing the same concern, Tengku Zafrul said that Malaysia would be end being losers if investors take their investments elsewhere due to the imposition of the Windfall Tax.
“But we’re looking at expanding our existing tax system and looking at other sources to generate revenue stream for our coffers,” he said.
On that note, Shah Alam MP stood up and said he disagreed with Tengku Zafrul’s assessment, adding the Windfall Tax would not spook investors, if applied judiciously.
“Usually, investors will have their projected profit rate. The Windfall Tax is only for those who enjoy extraordinary profits, without jeopardising their targets.
“So, I don’t really see an issue here,” the former Federal Territories Minister remarked. – July 26, 2021
