Windfall tax poser on glove stocks
WINDFALL taxes have often been considered at a time when a particular industry was making super normal profits. It was mooted for independent power producers that were reaping huge profits at the expense of the national utility company Tenaga Nasional Bhd
in 2008.
It was then floated and implemented for the plantation sector in the same year, during the Global Financial Crisis, as a means of balancing subsidy payments through taxing plantation companies that were reaping a bounty from high palm oil prices.
The windfall tax of IPPs were introduced for those companies making a high return on equity and for plantation companies, when the price of crude palm oil (CPO) crosses the RM2,500 threshold.
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