Deputy Finance Minister II Mohd Shahar Abdullah said that introducing a windfall profit levy could give a negative perception to investors that the government is taking advantage of the supernormal profits generated by companies following the global health crisis.
"The windfall profit tax is only presently levied on the palm oil commodity based on the monthly market price threshold of crude palm oil issued by the Malaysian Palm Oil Board. "The windfall profit tax has never been imposed on consumer finished goods or local manufactured goods such as rubber gloves because it is difficult to determine a uniform market price threshold, given that rubber glove products have different types, standards, specifications and grades according to the respective countries marketed," he said at the Dewan Negara today.
Mohd Shahar said this in response to a question from Senator Balasubramaniam Nachiappan who wanted to know whether the government would introduce a windfall profit levy, especially to corporates that had made supernormal profits during the pandemic such as Top Glove and others, that will benefit the country and society.
Mohd Shahar said although the windfall profit tax was not levied, the rubber glove manufacturing industry also contributed to the spillover effect on the national economy in terms of direct and indirect taxes, especially the company's increasing income tax, as well as continuing to provide jobs during the COVID-19 crisis.