The government plans to extend tax exemptions to fund management companies that manage sustainable and responsible investment (SRI) funds and also tax deductions on the cost of issuing SRI sukuk until the year of assessment 2027.
Prime Minister Datuk Seri Anwar Ibrahim said the government has proposed an additional tax deduction of up to RM300,000 to be given to companies that spend on measurement, reporting and verification (MRV) related to the development of carbon projects to encourage more companies to participate in the voluntary carbon market.
“These expenses can be deducted from the income from the sale of carbon credits traded on the Carbon Exchange,” he said during the tabling of Budget 2024 in the Dewan Rakyat today.
Anwar also said that the government will ensure that the Petroleum (Income Tax) Act 1967 remains relevant to the current needs of the upstream oil and gas industry, in addition to increasing the interest of foreign investors.
“The Petroleum (Income Tax) Act 1967 Revision Committee, consisting of the Ministry of Finance, the Inland Revenue Board and Petronas, is studying and drafting tax incentives for carbon capture and storage (CCS) and hydrogen sulphide projects,” he said.
The study will be finalised by the end of this year, Anwar said.
Source: BERNAMA News Agency