Tuesday 17 October 2023

ESG questionmarks from Budget 2024.

THE most publicly visible foot print, that a nation or a company is on the path leading towards fullfilling the Economic,  Social and Governance Platform is from the amount of Electric Vehicle's we see on the road.

ONE may choose to dispute my statement, but the bottomline is most of us find it very difficult to understand the precise metrics behind how ESG score are tabulated.

THAT being said, a slightly higher majority are more likely to have a better grasp of taxation or to be precise, on how to avoid meeting the taxman.

BUSINESSES were happy when Prime Minister Anwar Ibrahim announced under his road to ESG vision in Budget 2024, READ : For an addition RM300,000 tax deduction companies that spend on measurement reporting and verification (MRV) related to the development of carbon projects.

SINCE Wahid Omar has given the thumbs up on TAX DEDUCTION, perhaps he can now enlighten us on a tax perspective,  where our tax authorities stand in terms of tax deductibility and indirect tax treatment of carbon credit, because the budget 2024 is unclear on this matter.

IN Singapore, companies that purchase carbon credits are eligible for tax deductibles but the issuance, transfer and sale of carbon credits are subject to GST tax.

IN Malaysia, will Service Tax be applicable for the issuance, transfer and sale of carbon credits, would very much depend on  whether the provision of carbon credits would be included in the scope of taxable services.

THE long and winded technical point I am trying to make is if Budget 2024 is unclear on the matter, why on earth is Wahid Omar kissing up to, on a matter that has yet to be clarified

THE other ESG big media ticker from Budget 2024, is READ :the RM2,400 for the public to purchase electric motorcycles (e-bikes) next year, which has to be made more humane 

MR Prime Minister, thanks for the RM2,400 but it is not enough because READ : consumers have ample choice of buying normal motorbikes for less than RM5000, but an EV motorbike evenwithout batteries will cost around RM7000 to RM8000 at the very lowest end.

SINCE, the target users here are B40 and M20, I am afraid the RM2400 is a bit too little an incentive for the B40 to make the switch without hurting their purse strings.