ISKANDAR PUTERI: Tunku Abdul Rahman University of Management and Technology’s (TAR UMT) 10-year tax exemption was approved with a sole condition – it must submit audited annual accounts to the Finance Ministry every year, says Datuk Seri Dr Ahmad Zahid Hamidi.
The Deputy Prime Minister said the matter was decided during the Cabinet meeting yesterday after MCA president Datuk Seri Dr Wee Ka Siong publicly raised the issue.
“His proposal was well-received by the Prime Minister and the Cabinet has agreed that the earlier decision to give the 10-year tax exemption to TAR UMT will be honoured.
“They only need to submit their audited annual accounts to the Finance Ministry yearly. This is the decision of the Cabinet,” Ahmad Zahid told reporters when met at a ceramah here last night.
He also thanked Datuk Seri Anwar Ibrahim for listening to Dr Wee’s concerns.
“This is the struggle of MCA and Dr Wee. I thank the Anwar-led government for listening to the proposal. MCA is a component party of Barisan Nasional. This means Barisan’s push has been approved,” he added.
On Feb 4, Anwar announced that the government had approved a 10-year income tax exemption for education-based foundations, including the TARC Education Foundation; he also presented a mock cheque for a RM40mil matching grant to TAR UMT.
However, Dr Wee, who also chairs the TAR UMT board of trustees, revealed on July 6 that the university had received an official approval letter, granting only a three-year exemption.
He described the conditions as unfair and highly restrictive, warning that once the three-year window lapsed, the university could face tax liabilities running into tens of millions of ringgit a year, with thousands of students potentially affected.
In response, Transport Minister Anthony Loke said there were areas where TAR UMT has yet to comply and that the 10-year exemption would be reinstated once these were met.
Yesterday, government spokesman Datuk Fahmi Fadzil said the Cabinet’s decision came after it considered the issue and acknowledged the university’s special role in providing quality and affordable private higher education.
