National carbon tax policy in final phase, says MoF


KUALA LUMPUR: The government is in the final stage of finalising a comprehensive national carbon tax policy, with initial implementation focusing on the iron, steel and energy sectors.

Deputy Finance Minister Liew Chin Tong said the rollout is aligned with Malaysia’s commitment to achieve net-zero carbon emissions by 2050.

He was responding to Datuk Ahmad Amzad Mohamed @ Hashim (PN-Kuala Terengganu) during a question-and-answer session in the Dewan Rakyat today, who asked about the latest status and timeline for implementing the carbon tax in Budget 2026.

"The purpose of the carbon tax is not to generate higher revenue, but to establish carbon pricing so that carbon emissions carry a cost to be borne by the sectors involved.

"However, the setting of the carbon tax rate will be implemented in phases so as not to burden the industry as a whole,” Liew said.

He also said the carbon tax will not be imposed on small companies, but will instead apply only to large sectors that are the main contributors to greenhouse gas emissions. - Bernama 

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