KUALA LUMPUR: MCA president Datuk Seri Dr Wee Ka Siong has voiced concern over the pending expiry of Tunku Abdul Rahman University of Management and Technology’s (TAR UMT) tax-exempt status on Dec 31, warning that the Inland Revenue Board (IRB) has yet to approve an extension.
Dr Wee said the delay could have serious repercussions for thousands of students if the university is required to pay tax.
"Are we to suffer the same fate?" he asked, referring to similar tax uncertainties facing other institutions.
He noted that when the issue surfaced last year, he immediately appealed to Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim to intervene, but despite the Prime Minister’s announcement of a remedy, the matter remains unresolved after 14 months.
He cautioned that if both TAR UMT and Universiti Tunku Abdul Rahman (UTAR) lose their tax-exempt status, they could face taxes of up to RM20mil a year.
"Based on a cost per student of RM8,000 per year, this would affect the education of up to 5,000 students. This would undoubtedly cause great harm to our community’s education.
"Such a situation never occurred during the Barisan Nasional administration," he said during his address at the MCA 30th Central Delegates 3rd General Assembly on Sunday (Dec 7).
Dr Wee pointed out that under Barisan Nasional, both universities were granted permanent tax-exempt status—a commitment that stood for decades.
"Our universities’ permanent tax-exempt status was a contract made with the government over 50 years ago, and we have operated on the basis of that contract for decades.
"Barisan’s six decades in government never breached it. Today’s government has overturned that decision. How can we accept this?" he said.
He also highlighted that scholarships and bursaries at the two universities are awarded strictly based on merit and financial need, benefiting students of all races.
The combined annual intake of Chinese students alone at these universities exceeds the total number admitted by more than 20 public universities.
"Over the decades these two institutions have educated more than 400,000 graduates for the nation.
"We have never asked the government for any gesture of appreciation; we only ask for tax-exempt status and policy support so they can continue to nurture professionals who will give back to society, which ultimately benefits the government, the nation and all citizens.
"Mr Prime Minister, should these two universities be treated this way?" Dr Wee asked.
