KUALA LUMPUR, Oct 7 (Bernama) -- The additional tax claim against Tenaga Nasional Bhd (TNB) will not result in the cost being passed on to consumers through electricity tariff hikes, said the Ministry of Finance (MOF).
It said electricity tariffs in Peninsular Malaysia are determined by the Incentive-Based Regulation (IBR) framework and are subject to the government’s review and approval.
“TNB’s corporate tax liabilities are not costs that are automatically be passed on to consumers through electricity tariffs,” it said.
The ministry said this in a written reply to a question from Datuk Che Mohamad Zulkifly Jusoh (PN-Besut) regarding the implications of the additional tax claim on shareholder dividends and electricity tariffs.
According to the MOF, the claim also does not affect TNB's ability to continue paying dividends, which is based on the company's financial performance, cash position, and dividend policy.
“The government will continue to ensure that consumer interests are protected through existing tariff regulatory mechanisms, without compromising TNB's ability to provide safe and reliable electricity supply,” it said.
-- BERNAMA