KUALA LUMPUR – The government’s decision to waive RM83 million in taxes owed by Universiti Tunku Abdul Rahman (UTAR) has stirred significant discontent among the public, with netizens questioning the priorities in addressing financial burdens within Malaysia’s education system.
Many have taken to social media, arguing that if a major institution like UTAR can receive such leniency, similar relief should be extended to the thousands of students struggling to repay their National Higher Education Fund Corporation (PTPTN) loans.
The controversy began when Prime Minister Datuk Seri Anwar Ibrahim, who also holds the Finance Minister portfolio, instructed Treasury Secretary-General Datuk Johan Mahmood Merican to formally notify UTAR that its outstanding tax liabilities and penalties owed to the Inland Revenue Board (LHDN) would be written off.
This directive effectively concluded a tax dispute spanning several years, with Transport Minister Anthony Loke confirming the waiver in an interview with Sin Chew Daily.
The decision has prompted a wave of responses on X (formerly Twitter), with users tagging the Prime Minister and Higher Education Minister Datuk Seri Dr. Zambry Abdul Kadir, urging them to consider writing off PTPTN loans.
For the record, it was reported that a total of 430,000 borrowers have failed to repay their PTPTN loans, amounting to an estimated RM6 billion.
“Given the situation surrounding UTAR, I request that PTPTN loans also be written off. If the government can’t do it for all students, I suggest doing it for students who achieve a CGPA of 3.5 and above, from diploma to the highest certificate. This would be a good move,” @Eiladieyla commented.
@anwaribrahim @ZambryOfficial
— Ela (@Eiladieyla) October 9, 2024
Berdasarkan situasi UTAR tax write off ni, saya memohon agar PTPTN loan write off juga. Kalau tak mampu buat untuk semua saya cadangkan untuk buat kpd pelajar yg mndapat CGPA 3.5 keatas daripada sijil diploma hinggalah sijil tertinggi. https://t.co/PCTzJpxBxM
Another X user, Billi Bear, questioned whether UTAR, an institution owned by MCA, would reduce its tuition fees now that the government has waived its tax bill. Established in 2002, UTAR has long been considered tax-exempt as an educational institution.
Will those trustees in the UTAR education fund board (Mostly MCA members) decide to reduce the tuition fees for the students in UTAR accordingly too?
— Billi Bear (@BilliBear3) October 9, 2024
The university now has around 20,000 students across its two campuses in Kampar, Perak, and Sungai Long, Selangor. Degree programme fees range from RM45,000 to RM50,000 for a three-year course.
“Will the trustees on UTAR’s education fund board, who are mostly MCA members, decide to reduce tuition fees for students accordingly?” Billi Bear asked.
Meanwhile, another user, @1fanmeow, argued that private universities should also be exempted from taxes, especially those that provide financial aid to students.
“While public universities are funded by taxpayers and not accessible to all, it might be worth asking whether private universities should be exempted from taxes, especially those that offer financial aid,” the user said.
The tax bill imposed by LHDN included fines amounting to 45% of the total. However, under subsections 127(3A) and 44(6B) of the Income Tax Act 1967, the finance ministry granted UTAR income tax exemption for the years 2017 to 2023.
This retrospective exemption ensures the university will not be liable for taxes during that period, although it will be subjected to taxation from the 2024 assessment year onwards.
Additionally, the UTAR Education Foundation (UEF) was granted a five-year tax exemption under subsection 44(6B) of the same Act, effective from January 1, 2025, to December 31, 2029, but only for educational purposes.
The ministry also stipulated that from January 2025, UTAR and UEF must operate as separate entities, each with distinct audited accounts.
However, UEF’s request to manage UTAR as a single entity under the foundation was not approved, maintaining both organisations as legally distinct. – October 9, 2024