Experts urge thoughtful consideration before implementing carbon tax in Malaysia
Experts suggest that Malaysia should carefully weigh various factors before adopting a global trend and implementing a carbon tax regime.
Experts suggest that Malaysia should carefully weigh various factors before adopting a global trend and implementing a carbon tax regime. While there is resistance from some quarters, experts argue that considerations are crucial to ensure the tax benefits businesses overall.
Deloitte Malaysia's country tax leader, Sim Kwang Gek, emphasizes that any implementation must factor in the overall cost burden to businesses, particularly small and medium enterprises (SMEs), along with legal framework considerations and the availability and reliability of data.
“Currently, Malaysia doesn't have a carbon tax, but discussions are underway as part of efforts to reduce greenhouse gas emissions,” Sim Kwang Gek added. The country presently offers tax incentives to encourage green practices and investments, with Budget 2024 proposing extensions and expansions of existing green tax incentives. These measures align with the government's goal of achieving net zero emissions by 2050.