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Carbon Tax Implementation Delayed to Establish Regulatory Framework

Kuala Lumpur:The deferment of the carbon tax implementation aligns with the Natural Resources and Environmental Sustainability Ministry's efforts to establish a complete regulatory and policy framework before enforcing emission caps.

According to BERNAMA News Agency, Minister Datuk Seri Arthur Joseph Kurup stated that the government decided to delay the tax, originally planned for this year, in response to global geopolitical developments that led to volatile energy prices. This delay provides affected industries with a necessary buffer.

Speaking during a Concorde Club dialogue session at Wisma Bernama, Arthur emphasized the importance of finalizing the legal structure, including the National Carbon Market Policy and the forthcoming Climate Change Act. He highlighted that once these frameworks are established, they will guide the regulation and enforcement of emission ceilings, with the carbon tax serving as a penalty for exceeding these limits. Consequently, the carbon tax is not expected to be implemented this year.

In regard to Clean Air Regulations exemptions, Arthur noted that extensions would only be granted to factory operators who demonstrate proactive measures toward adopting technology. While no new blanket extensions are being issued, operators with expiring exemptions by January next year must show clear steps toward compliance, with 2030 set as the final deadline for complete industry compliance.

Arthur added that while operators require time for feasibility studies and modifications, strict progress is essential to qualify for temporary extensions. The session, titled "Building A Resilient Malaysia: Environment, Climate And Our Future," was moderated by Malaysian National News Agency (Bernama) chairman Datuk Seri Wong Chun Wai and attended by Bernama chief executive officer Datin Paduka Nur-ul Afida Kamaludin, as well as local and foreign media members based in Malaysia.

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