MPs moot windfall tax for firms making huge profits during pandemic

 

PARLIAMENT | Lawmakers from both sides of the aisle have proposed a windfall tax for companies that made huge profits during the pandemic.

Syed Saddiq Syed Abdul Rahman (Independent-Muar) said among those that have reaped profits during the Covid-19 pandemic and able to pay additional taxes are glovemakers.

He cited profits earned by Top Glove Corporation, Hartalega Holdings Bhd, and Supermax Corporation.

According to the Malaysian Reserve, Top Glove’s net profit soared 417 percent in the financial year 2020 to RM1.87 billion.

Hartalega meanwhile posted a 424.5 percent increase in net profit to RM545 million in the second quarter of its financial year 2021.

Supermax had a net profit of RM789.5 million in the first quarter of the financial year 2021, nearly a 32-fold increase from the same period last year.

Another glovemaker, Kossan Rubber Industries Bhd reported a 135 percent jump in second-quarter earnings.

Syed Saddiq said instead of increasing taxes for these companies, a total of RM400 million donation was accepted from them to the government's Covid-19 fund.

If a windfall tax had been applied, he said, the government could have instead taken RM4.8 billion in tax income.

"This could have been used to buy vaccines which cost RM3 billion.

"We don't want to punish these companies, but when they get extraordinary profits because people are suffering from Covid-19, they have a moral and legal obligation to return that money for the people to handle Covid-19 as well," he said in the Dewan Rakyat today.

The former youth and sports minister added that if a windfall tax is not imposed, questions will arise whether there were political motivations.

"Is it because they think that the general election is near, so if they don't impose taxes, these taukes (bosses) will make big contributions to political parties? The people will ask this," he said.

Earlier, Shaharizukirnain Abdul Kadir (PAS-Setiu) also proposed a windfall tax for companies that reaped huge profits.

He made the suggestion while proposing that the government lower taxes for small and medium enterprises (SMEs) which are struggling, and cover the income loss by implementing a windfall tax.

"I believe the government has room to impose higher taxes to these big companies which made huge profits," he said. - Mkini