KUCHING: It is hoped that the Federal Minister of Finance (MOF) will extend the incentive application for Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) in order to tackle climate change.
Deputy Minister for Energy and Environmental Sustainability Dr Hazland Abang Hipni said that the incentives, which were presented in last year’s Budget 2023, would be very good for those who are involved in the activities.
“This will also motivate the companies or agencies to take climate change mitigation activities seriously,” he said.
He also added that the incentive would also be useful due to the cost of the equipment and facilities that are very expensive.
“This is the kind of incentive that the industry players are looking forward to right now,” he pointed out during the press conference for the upcoming Asia Carbon Conference 2023 (ACC) at Pullman Hotel in Kuching on Thursday (February 16).
He then also said that he would be meeting Deputy Minister of Finance Datuk Seri Ahmad Maslan sometime next week to discuss further on that matter.
Earlier, former Federal Minister of Finance Datuk Seri Tengku Zafrul Aziz stated in the last year’s Budget 2023 that the then federal government suggested the extension of incentive application for GITA and GITE until December 31 2025 in order to not only encourage green investment, but also to tackle the issue of climate change.
Under the GITA initiative, the proposed investment tax allowance (ECP) is 60 per cent for solar activities and 100 per cent ECP for activities other than solar and solar plus Battery Energy Storage System (BESS) battery energy storage systems.
Under the current GITE initiative, an income tax exemption of 70 per cent on statutory income would be imposed towards the eligible green service activities for a period of three assessment years and an income tax exemption of 70 per cent on statutory income for up to 10 years for solar leasing activities.
