Cabinet restores TAR UMT’s 10-year tax break after Dr Wee raises issue

Cabinet restores TAR UMT’s 10-year tax break after Dr Wee raises issue

Cabinet restores TAR UMT's 10-year tax break after Dr Wee raises issue

ISKANDAR PUTERI: Tunku Abdul Rahman University of Management and Technology’s (TAR UMT) 10-year tax exemption was approved with a sole condition – that the institution submit audited annual accounts to the Finance Ministry every year, says Datuk Seri Dr Ahmad Zahid Hamidi.

The Deputy Prime Minister said the matter was decided at the Wednesday (July 8) Cabinet meeting after MCA President Datuk Seri Dr Wee Ka Siong publicly raised the issue.

“His proposal received a very good response from the Prime Minister, and the Cabinet has agreed that the earlier decision to give the 10-year tax exemption to TAR UMT will be honoured.

“They only need to submit their audited annual accounts to the Finance Ministry every year. That is all. This is the final decision made by the Cabinet,” he told reporters when met at a ceramah in Iskandar Puteri on Wednesday night (July 8).

Ahmad Zahid thanked Prime Minister Datuk Seri Anwar Ibrahim for listening to Dr Wee’s concerns.

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“This is the struggle of MCA and Datuk Seri Dr Wee. I thank the Anwar-led government for listening to the MCA President’s proposal.

“MCA is a component party of Barisan, which means Barisan’s push has been approved,” he said.

On Feb 4, Anwar announced during the “Temu Anwar” programme at TAR UMT’s main campus in Setapak that the government had approved a 10-year income tax exemption for education-based foundations, including the TARC Education Foundation, and presented a mock cheque for a RM40mil matching grant.

However, Dr Wee — who also chairs the TAR UMT board of trustees — revealed on July 6 that the university had received an official approval letter granting only a three-year exemption, and that it covered only donations received by the foundation rather than operating income such as tuition fees.

He described the conditions as unfair and highly restrictive, warning that once the three-year window lapsed, the university could face tax liabilities running into tens of millions of ringgit a year, with thousands of students potentially affected.

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Transport Minister Anthony Loke had said there were areas where TAR UMT was yet to comply with requirements, and that the 10-year exemption would be reinstated once these were met.

On Wednesday (July 8) evening, government spokesman Datuk Fahmi Fadzil said the decision by the Cabinet came after it considered the issue and acknowledged the university’s special role in providing quality and affordable private higher education.