November 9, 2021

TNB, Axiata And TM Support 'Prosperous Tax'

 Tenaga Nasional Bhd (TNB), Axiata Group Bhd and Telekom Malaysia Bhd (TM) showed their support for the special one -time relief tax "Cukai Makmur" introduced by the Minister of Finance, Tengku Datuk Seri Zafrul Tengku Abdul Aziz in the presentation of the 2022 Budget.

According to Tengku Zafrul, TNB, TM and Axiata have expressed their support for the Prosperous Tax that has been introduced. Apart from that, in the rubber glove sector, Top Glove also welcomed the tax proposal.

The Budget 2022 presentation on October 29 introduced a special one-time relief tax, "Cukai Makmur" on companies that receive annual reports in excess of RM100 million under a tax scheme aimed at ensuring the country's public health system remains sustainable in the future. post -pandemic.

In short, Prosperous Tax will be imposed on companies with reported income in excess of RM100 million will be subject to 24% income tax on the first RM100 million while the remaining taxable income will be subject to 33% income tax.

Following the Covid-19 pandemic crisis that hit the country, there is an increasing need to fund the welfare of the affected Malaysian population and to ensure the country's public health remains sustainable, the tax has been introduced.

Meanwhile, during Invest 2021 on Tuesday, Tengku Zafrul had raised questions on the possible re -implementation of the Prosperous Tax and according to him in the near term, the government would consider options to reduce reliance on direct taxes and broaden the income base in this extraordinary situation.

He added that the proposed Fiscal Responsibility Act which will be tabled in Parliament in 2022 will outline the organizational level for government revenue measures.