KUALA LUMPUR: MCA has reaffirmed its commitment to providing affordable education options and safeguarding the operational integrity of non-profit educational institutions in the country.
Its secretary-general Datuk Chong Sin Woon said MCA president Datuk Seri Dr Wee Ka Siong plans to meet with the UTAR Education Foundation to review and respond to the Inland Revenue Board’s (LHDN) letter regarding tax issues.
“The president will discuss with the foundation on how to respond to the letter. In principle, there should be no issues.
“The policy of exempting UTAR and other non-profit organisations from taxes should be continued by the government,” he told reporters at MCA headquarters here yesterday.
Chong stressed that although the Cabinet has waived the tax and penalties against the university, the matter remains unresolved and will impact other institutions.
“The issue of separating the university from the UTAR Education Foundation is not in line with the Act (Private Higher Educational Institutions Act 1996).
“Therefore, there should be a formula to resolve the issue as this will affect not only UTAR but also other non-profit organisations,” he said.
UTAR has been under the spotlight following reports that LHDN imposed RM83mil in outstanding taxes and penalties on the university.
However, a letter sent to UTAR on Oct 8 indicated that the arrears owed to LHDN had been cancelled.
Despite the cancellation of its tax bill, UTAR remains embroiled in controversy, as a letter from the Treasury clarified that the not-for-profit university is required to begin paying taxes starting from the year of assessment 2024.
The letter also stipulated that from January 2025, UTAR and the UTAR Education Foundation must operate as separate entities, each maintaining its own audited accounts.
Founded on Aug 13, 2002, as a non-profit private university, UTAR aims to provide affordable and quality education.
With campuses in Kampar, Perak, and Sungai Long, Selangor, UTAR’s enrolment has grown to approximately 20,000 students.
Since its inaugural convocation in 2005, over 86,900 students have graduated from the university.
