Malaysia

Govt yet to finalise carbon tax rate

The government has not set the appropriate rate for the carbon tax scheduled for next year, Finance Minister II Datuk Seri Amir Hamzah Azizan says

Updated 11 months ago · Published on 06 Nov 2025 3:28PM

Govt yet to finalise carbon tax rate
The rate will only be decided after the National Climate Change Bill is presented and approved in Parliament - November 6, 2025

THE Governmenthas yet to determine the appropriate rate for its carbon tax, which is slated for implementation next year, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

He explained that the rate will only be finalised once the National Climate Change Bill (RUUPIN) is presented by the Ministry of Natural Resources and Environment and subsequently approved in Parliament.

“We need to wait for RUUPIN because we require a standard methodology to calculate carbon emissions and establish a benchmark. If emissions exceed that benchmark, only then will a carbon tax be imposed.

“At the moment, the Ministry of Finance has not conducted an in-depth study to determine the rate of carbon tax to be applied, and the baseline framework of RUUPIN must be established first,” he told reporters after officiating the ASEAN Capital Market Forum (ACMF) International Conference in Kuala Lumpur today.

His remarks came in response to international media reports suggesting that Malaysia would impose a carbon tax of RM15 per tonne starting next year.

Commenting further, Amir Hamzah said the reports were speculative, as the government has not yet finalised the appropriate rate.

The government will conduct a detailed evaluation once RUUPIN is approved, including reviewing major carbon-emitting industries such as iron, steel, and utilities, before setting the official carbon tax rate, he added. - November 6, 2025

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