MALAYSIA, 14/10/2024 (Asia News Channels) - The Malaysian government has decided to waive Universiti Tunku Abdul Rahman’s (UTAR) RM83 million tax bill, according to Prime Minister Anwar Ibrahim. The decision aligns with Putrajaya’s policy of granting tax exemptions to non-profit educational institutions.
Speaking at the annual general meeting of the Associated Chinese Chambers of Commerce and Industry of Malaysia, Anwar explained that the delay in approving the exemption was due to the fact that UTAR and the UTAR Education Foundation (UTAREF) had not yet separated their operations and maintained distinct audited accounts. He emphasized that tax exemptions are available to non-profit entities that focus on educational development, particularly for underprivileged students.
“If it’s about developing faculties, allowing underprivileged students to study, or waiving tuition fees, we will exempt taxes. I see no problem with that,” Anwar said. He acknowledged the delay in granting the exemption and noted that UTAREF has committed to restructuring within a year.
UTAR’s tax bill, which included fines amounting to 45%, was reported last week. Deputy Finance Minister Lim Hui Ying had stated that the university would appeal the Inland Revenue Board's (LHDN) decision on the outstanding taxes and penalties.
On Thursday, MCA secretary-general Chong Sin Woon confirmed that a letter from Treasury secretary-general Johan Mahmood Merican notified UTAR of the Cabinet’s decision to write off the tax bill. However, the letter also emphasized the need for UTAR and UTAREF to operate as separate entities with distinct audited accounts starting next year.
-- ASIA NEWS CHANNELS