Glove makers to pay higher taxes

PETALING JAYA: Glove manufacturers are expected to continue reaping huge profits into next year with the amount of corporate income tax paid by the industry projected to reach RM4.7bil in 2021 after forking out RM2.8bil in 2020.

According to Maybank Investment Bank Research following its dialogue with Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, the government decided it would not impose a windfall tax on glove manufacturers to avoid potential “opportunity costs/losses” such as glove manufacturing companies investing overseas instead of in Malaysia, and sending the wrong signal to existing and potential investors in other industries.