KUCHING, Oct 25: It is high time the federal government, through its taxation system, reward industries and businesses that embrace green and renewable energy with tax rebates or lower tax rates than those relying on conventional fossil fuels.
Raising this, Stampin MP Chong Chieng Jen emphasised that this is particularly relevant for Sarawak, which currently generates 75 per cent of its electricity from hydropower through the Batang Ai Dam (108MW), Bakun Dam (2,400 MW), and Murum Dam (944 MW).
“More importantly to the economy of Sarawak, by extrapolating this power generation mix, therefore, it can be concluded that at least 75 per cent of industries and companies in Sarawak would have been using renewable energy as their energy source.
“There should thus be a mechanism set up by the government to properly and systematically recognise this and accord the industries and businesses in Sarawak with appropriate rewards in the form of preferential tax rates or additional grants for keeping the country green,” he said when debating Budget 2024 in Parliament today.
Chong thus proposed that the government set up a “carrot and stick” mechanism under which companies using renewable energy sources with low or zero carbon emission be given some form of tax incentives or enjoy reduced corporate tax rates, while those consuming fossil fuel energy with high carbon emission processes be taxed at a higher rate.
“This will help to move our economy towards our national goal of reducing CO2 intensity against GDP by 45 per cent by 2030 and achieving a net-zero carbon emission country by 2050,” he emphasised.
Chong pointed out the current disparity where certain states in Malaysia contribute significantly to the country’s CO2 emissions but experience rapid economic growth, while states like Sarawak, which help lower CO2 intensity, face slower economic growth.
“The externality of the high-polluting states is passed on to the low-polluting states. That is not fair to states like Sarawak which is a low-polluting State,” he stressed. — DayakDaily
