10 years cut to 3: TAR UMT students pay the price for government's tax exemption U-turn

The problem is not simply that the government has cut the promised 10-year tax exemption for TARC Education Foundation (TEF) to three years. The deeper concern is that the Finance Ministry has attached new conditions that alter a tax framework which has supported affordable higher education for generations. In the end, it is students who will pay the price.

Earlier this year, the government publicly announced a 10-year tax exemption for TEF under Section 44(6) of the Income Tax Act 1967. But the Finance Ministry's approval letter, dated 23 June, confirms the exemption runs for only three years, from 1 January 2026 to 31 December 2028. This departs from the Prime Minister's public commitment and has understandably worried the university community and the public.