KUALA LUMPUR (Nov 9): Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said on Tuesday (Nov 9) that Tenaga Nasional Bhd (TNB), Axiata Group Bhd and Telekom Malaysia Bhd (TM) had stated their support for the government’s Budget 2022 proposal to implement the Covid-19-driven special one-off tax known as "Cukai Makmur” on companies which report annual taxable income of more than RM100 million under a tax scheme that aims to ensure the country’s public health system is sustainable to face future threats.

According to Tengku Zafrul, Top Glove Corp Bhd has also indicated that the company is happy to contribute the special one-off tax, which is popularly known as the prosperity tax.

Tengku Zafrul, who was speaking at the Invest Malaysia 2021 event held virtually, said that several large corporations had said that the one-off tax will not affect their dividend payments.

"For instance, TM, TNB and even Axiata have stated their support [for] this effort (Cukai Makmur).

“[As for the rubber glove sector], they (Top Glove) also have stated that they are happy to contribute to the prosperity tax,” he said.

On Oct 29, Tengku Zafrul said in his speech on Budget 2022 that under Cukai Makmur, companies which report annual taxable income of more than RM100 million will be subjected to a 24% income tax on the first RM100 million of their annual taxable income, while the remaining taxable income will be subjected to a 33% income tax.

Following the Covid-19 pandemic crisis, there is an increasing need to finance the welfare of the affected segments of the Malaysian population, according to him.

To ensure the country’s public health system is sustainable to face future threats, he said the government had decided to introduce the special one-off tax on companies which generate high income.

At the Invest Malaysia 2021 event on Tuesday, Tengku Zafrul fielded a question about the possibility of the reimplementation of Cukai Makmur.

He said Cukai Makmur is implemented only during these extraordinary times.

In the medium term, the government will consider options to reduce reliance on direct taxes and widen its revenue base, according to him.

He said the government will review its tax legislation and modernise its revenue administration in its medium-term strategy.

According to him, the proposed Fiscal Responsibility Act, which will be tabled in Parliament in 2022, will outline the organisation stages of the government’s revenue measures.

As at the time of writing on Tuesday, TNB, Axiata, TM and Top Glove had not issued statements on the proposed Cukai Makmur.