PETALING JAYA: The recent RM83mil tax waiver granted to Universiti Tunku Abdul Rahman (UTAR) is solely for educational purposes, says Datuk Seri Anwar Ibrahim.
The Prime Minister said this aligns with Malaysia's policy of providing tax exemptions to non-profit educational foundations.
Anwar acknowledged criticism of the tax relief given to UTAR, which some Opposition figures claim was "preferential treatment".
He dismissed this notion, stating the waiver complies with government policies.
"Yes, UTAR is a Chinese Malaysian university. But what is our policy? Any effort or foundation related to education and is non-profit, we exempt from taxes," Anwar said at the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) 78th annual general meeting on Sunday (Oct 13).
He said the delay in granting UTAR the exemption was due to the university's foundation not fully separating its commercial ventures from educational activities.
He emphasised that commercial interests must remain distinct from educational activities to qualify for tax exemption.
"I suggested dividing the two. But if it's for faculty development, helping underprivileged students or exempting tuition for poor students, we will grant tax exemption," Anwar said.
Anwar noted that the UTAR Education Foundation indicated its intention to separate the operations within a year, requesting interim tax exemptions for education-related activities.
"Recently, they informed us they need a year to fully separate the operations but in the meantime, they requested tax exemptions for all education-related approvals and to help underprivileged students," he added.
The Prime Minister highlighted that the government's tax exemption policy covers all educational foundations supporting underprivileged students, regardless of ethnicity.
The RM83mil tax waiver sparked debate, with questions about its implications for other private institutions.
However, Anwar affirmed that the waiver aligns with the broader policy of supporting non-profit educational institutions, provided their activities are distinct from commercial interests.
