Introduce windfall tax to profitable glove-making companies

graphic by MZUKRI MOHAMAD

THE government should introduce the windfall tax to rubber glove manufacturers in the country that have reaped huge profits amid the Covid-19 pandemic.

The proposal was made by Muar MP Syed Saddiq Syed Abdul Rahman as he noted that four main glovemaker companies’ profits have increased multifold amid an economic downturn.

The companies he highlighted were Top Glove Corp Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd.

“The government does not tax these companies, but only takes RM400 million donation from them to buy their supplies for Covid-19.

“It means that these companies are not at all affected by the donation and are still gaining profit.

“We should remember that the shares from these four companies increased 441% during the pandemic. If the government taxes them, it would be able to collect RM4.8 billion,” he said in his debate for the Supply Bill 2021 in Dewan Rakyat yesterday.

He added that the tax is only a temporary measure to assist economic recovery.

Syed Saddiq said more taxation systems to profitable companies should be introduced after the windfall tax.

The former youth and sports minister also urged the government to increase allocation for students to buy laptops as the pandemic has forced them to practice open distance learning due to movement restrictions enforced to mitigate the spread of the virus nationwide.

He added that as students are no longer using university facilities, the government should reduce tuition fees to enable those in the lower income groups to continue their education.

Meanwhile, Jerlun MP Datuk Seri Mukhriz Mahathir filed an amendment bill to postpone the general election because of the pandemic.

He proposed for the amendment of Article 55(3) of the Federal Constitution which states that the Parliament must be dissolved after five years to make way for a general election.

“The purpose of this bill is to allow the government to postpone the election due to threats from the virus.

“This is important especially in the situation where the law stipulates for a general election to be held amid a pandemic,” he said during his debate for Budget 2021 yesterday.

Although the amendment requires two-thirds support from the Dewan Rakyat and Dewan Negara, Mukhriz is confident that the government wants to put a stop to the virus in the country.

“The government should support the proposal for this amendment. In fact, it is better for the government to draft the bill to be presented in the Dewan Rakyat,” he said.