SUPP man appeals PM Anwar to exempt public, private universities from income tax

SIBU (Oct 13): Sarawak United Peoples’ Party (SUPP) Dudong branch chairman Wong Ching Yong is appealing to Prime Minister Datuk Seri Anwar Ibrahim to invoke Section 127(3A) and 44(6B) of the Income Tax Law to exempt all public and private universities from income tax.

Wong, who has been a tax consultant for 40 years, suggested private universities with profit-orientation, if they get the exemption, must reduce their tuition fee by 30 per cent as one of the conditions so students can enjoy a more economical tuition fee.

“The Gabungan Parti Sarawak (GPS) government will give free tertiary education in 2026 onwards — why can’t the unity government follow suit?

“Thus, I appeal to the prime minister to invoke Section 127(3A) and 44(6B) of the Income Tax Law to exempt all public and private universities from income tax so private universities with profit-orientation, once they get this exemption, must reduce their tuition fee by 30 per cent so tax benefits will be passed down to the students,” he told a press conference after SUPP Dudong branch’s mobiel service here today.

He said under Section 127(3A), the Minister may, in any particular case, exempt any person from all or any of the provisions of this Act, either generally or in respect of any income of a particular kind or any class of income of a particular kind.

Section 44(6B), on the other hand, states: Where any institution, organisation, appropriate religious authority, body or public university is aggrieved by the decision of the Director General in respect of an application made under subsection (6) or (11D), the institution, organization, appropriate religious authority, body or public university may, within thirty days after being informed of the decision, appeal to the Minister and the Minister may make any decision as he considers fit.

Adding on, Wong said it was reported that while the Finance Ministry had granted University of Tunku Abdul Rahman (UTAR) income tax exemption for the years 2017 to 2023 under Section 127(3A) and 44(6B), the university would be subject to taxation starting from the 2024 assessment year.

On this, Wong hoped Anwar, who is also Finance Minister, would continue to execute his power under the two sections to exempt UTAR from paying income tax from 2024 onwards.

“Why can’t Democratic Action Party (DAP), which has the most number of MPs in the unity government, fight for this exemption even though UTAR was formed by MCA?

“Many people in Sibu said they would like Lanang MP Alice Lau and Sibu MP Oscar Ling to raise the matter in the coming parliament sitting. Don’t just ‘diam-diam sahaja’ (stay quiet),” he said.

He noted many DAP leaders, including Penang Chief Minister Chow Kon Yeow and Seputeh MP Teresa Kok, graduated from UTAR.

“They should voice out to support their mother school. UTAR has provided education to few hundred thousands of Malaysians, irrespective of their race, religious and political background — and it is a non-profitable organisation with a current student population of 26,000,” he said.

Wong noted a letter from Treasury secretary-general Johan Mahmood Merican to UTAR notifying it of the Cabinet’s decision also stated the university and its foundation, the UTAR Education Foundation (UTAREF), must operate as separate entities with distinct audited accounts from next year.

“This is worrisome for UTAR because MCA claims this contradicts the Private Higher Educational Institutions Act 1996 (Act 555), which requires a private university be established by a foundation,” he said.

He added MCA had expressed their views that it was not possible to separate the foundation from the university as all the funds received by the foundation are used to administer the university.