KUALA LUMPUR: The tax recovery measures imposed by the Inland Revenue Board (LHDN) on Universiti Tunku Abdul Rahman (UTAR) will put similar pressure on other charitable organisations, says MCA.

The party’s central committee member Dr Monna Ong Siew Siew said private hospitals, non-governmental organisations and religious groups can also be subjected to the move.

“Such actions not only undermine the operational capabilities of social welfare organisations but also erode public confidence in the government’s support for public services.

“The Prime Minister, who is also Finance Minister, needs to take decisive action to withdraw the unreasonable tax recovery directive against UTAR and restore its tax-exempt status to ensure the university can continue its educational mission without unnecessary financial pressure,” she said.

Ong, who is also MCA public policy and people’s livelihood research advisory committee chairman, highlighted UTAR’s contributions towards Malaysia’s human capital by nurturing countless talents.

“This latest tax recovery move and penalty confronting UTAR imposes a severe strain on daily operations, demoralises staff, directly impacts the learning environment of its students and weakens the country’s future talent competitiveness,” she added.

Ong said the move could also lead to difficulties in UTAR’s long-term development.

“The government has a responsibility to comprehend and acknowledge the contributions that such institutions render to society, rather than target them with punitive tax measures,” she said.

Education, Ong added, is the foundation of national development and non-profit educational institutions play a crucial role in the process.

“The government should not weaken their operations by imposing tax burdens but instead support them through policies to ensure that they can continue to nurture future talent for the country,” said the Terengganu MCA liaison committee chairman.

Separately, Transport Minister Anthony Loke said the issue would be resolved soon.

Loke, who is DAP secretary-general, said the appeal had also been made directly to Prime Minister Datuk Seri Anwar Ibrahim.

https://www.thestar.com.my/news/nation/2024/10/05/removal-of-utar-tax-exempt-status-poses-severe-strain