The Board of Directors of TASCO wishes to announce that the Company has received an approval letter from MIDA for the second round of tax incentive to carry out Integrated Logistics Services (ILS) activities as an expansion project under the P.U. (A) 113 Income Tax (Exemption) (No. 12) Order 2006, Income Tax Act, 1967 (“Approval Letter”).

The ILS incentive will enable the Company to enjoy income tax exemption via Investment Tax Allowance (“ITA”) of 60% on qualifying capital expenditure incurred within five years. The ITA can be offset against 70% of statutory income for each year of assessment. Amongst the terms and conditions stipulated in the Approval Letter, the Company shall make additional investments in capital expenditure related to logistics of at least RM240 million for a period of 5 years. At this juncture, the Board has yet to quantify the amount of tax saving from the ILS incentive as the total investment cost has yet to be finalised.

The Company has made an appeal on certain other terms and conditions stipulated in the Approval Letter, and is currently awaiting the results of the appeal. The Company will make further announcement on the development of the appeal.  

The Board is of the opinion that the ILS incentive would contribute positively to the future earnings of the TASCO Group.

This announcement is dated 10 September 2020.