Budget 2025: Govt to introduce carbon tax on iron, steel and energy industries by 2026


KUALA LUMPUR: The government will introduce a carbon tax on the iron and steel as well as energy industries by 2026.

Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, said the tax is aimed at promoting the use of low-carbon technologies.

"Revenue generated from this tax will be used to fund green research and technology programmes,” he said when tabling Budget 2025 in the Dewan Rakyat here today.

Meanwhile, he said UEM Lestra and Tenaga Nasional Bhd will invest RM16 billion to increase the transmission and distribution network capacity as well as decarbonise industrial areas.

Anwar said the open grid access initiative will be implemented through the Corporate Renewable Energy Scheme (CRESS) to enable corporate users to obtain electricity supply from preferred renewable energy (RE) generators.

The Prime Minister said dual-function RE generation structural designs such as the agrivoltaics concept will be introduced to prevent RE power plants’ negative impact on food production. - Bernama

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