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KUALA LUMPUR: The government has no plans to impose a windfall tax on rubber glove manufacturers who enjoy supernormal profits from the increased demand and selling price of rubber gloves worldwide or on other companies that they have benefited enormously from the COVID-19 pandemic. according to the Ministry of Finance (MoF).
Deputy Finance Minister II Mohd Shahar Abdullah said the introduction of a windfall tax could give investors a negative perception that the government is taking advantage of the windfall profits generated by companies after the global health crisis.
“The windfall tax is currently only applied to the palm oil commodity based on the monthly market price threshold for crude palm oil issued by the Palm Oil Board of Malaysia.
“The windfall tax has never been applied to consumer finished products or local manufactured products such as rubber gloves because it is difficult to determine a uniform market price threshold, since rubber glove products have different types, standards, specifications and grades in accordance with the respective marketed countries, “said today in the Dewan Negara.
Mohd Shahar said this in response to a question from Senator Balasubramaniam Nachiappan who wanted to know if the government would introduce a windfall tax, especially for companies that made supernormal profits during the pandemic, such as Top Glove and others, that will benefit the country. and society.
Mohd Shahar said that although the windfall tax was not collected, the rubber glove manufacturing industry also contributed to the spillover effect on the national economy in terms of direct and indirect taxes, especially the increase in income tax from the company, in addition to continuing to provide jobs during the COVID-19 crisis.
“In addition to that, as announced in the 2021 Budget, the main glove manufacturers will also contribute RM400 million for the purpose of combating COVID-19, including covering part of the cost of the vaccine and the cost of the peripherals of the equipment. health, “he said. – Bernama
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