KUALA LUMPUR: Work is still ongoing to refine the proposed national carbon tax before its eventual implementation, says Datuk Seri Arthur Joseph Kurup.
The Natural Resources and Environmental Sustainability Minister said this was because the proposed tax must take into consideration industry readiness and the policy framework required for its implementation.
“We will look into the timing of the implementation and decide on it, but it will be implemented in due course,” he told reporters after officiating the Malaysia Palm Carbon Conference 2026 yesterday, Bernama reported.
He also said the government was examining the mechanism for the use of carbon tax revenue, with proposals being considered to channel it towards climate adaptation projects, forest conservation and sustainable land management.
This was important to ensure revenue collected could be used to support the sustainability agenda and strengthen the country’s resilience to climate change, he said.
Arthur stressed that the implementation of the carbon tax was not intended as a punitive measure but rather as an incentive to encourage the use of green technology and reduce carbon emissions.
On April 21, the minister said the government would review the proposed implementation of the carbon tax, taking into account the current energy supply crisis and geopolitical issues.
He said the proposed carbon tax was initially planned for introduction this year and targeted selected industries such as steel, cement and construction.
However, its implementation may be deferred to avoid placing additional burdens on industries and consumers amid current global uncertainties.
