[UPDATED] Govt to introduce carbon tax soon: Tengku Zafrul

KUALA LUMPUR – A new carbon tax will be introduced soon in the government’s effort towards achieving carbon neutrality by 2050, the Dewan Rakyat heard today. 

In tabling the 2023 budget today, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said a study will also be conducted on the feasibility for a carbon pricing mechanism. 

“To support this, the government will allocate RM10 million in matching grants to assist in the preparation of carbon assessments for small and medium enterprises as well as other eligible related products,” he said. 

However, Tengku Zafrul did not provide further details on when the implementation of these initiatives will be realised. 

According to the minister, other measures to push for carbon neutrality include providing income tax deductions to those who donate or sponsor Smart AI-Driven Reverse Vending Machine equipment. 

This is part of the government’s measures to increase plastic waste collection, he explained. 

In addition, Tengku Zafrul said the government will also grant up to RM4,000 in sales rebate to businesses offering motorcycle rental services in Pulau Tuba in Langkawi, who replace their existing vehicles with an electric motorcycle. 

Pulau Tuba is Malaysia’s first low-carbon island.

In an immediate reaction, climate activists appeared to take the announcement with a pinch of salt. 

Ili Nadiah Dzulfakar, founder and chairman of Klima Action Malaysia said “this is the second time they are announcing it, and this time with a budget to work with.” 

“The carbon tax feasibility framework must assess tax governance of polluters and who will benefit from this revenue, and assess the tax infrastructure with emphasis on transparency, such as disclosure of greenhouse gas emissions, among many others.” – The Vibes, October 7, 2022