KUALA LUMPUR: The government should introduce logging and carbon taxes in the 2019 Budget to be tabled by Finance Minister Lim Guan Eng on Nov 2.
Association for the Protection of the Natural Heritage of Malaysia (Peka) president Puan Sri Shariffa Sabrina Syed Akil said the two taxes would serve a dual purpose — acting as new sources of income for the government, as well as protection for the environment.
She said a logging tax could serve to control rampant graft, which was said to surround the industry, as logging companies would have to declare the number of logs and the areas in which trees were felled, making it easier for the authorities to monitor their activities.
“At present, state governments don’t receive much from logging activities. On the contrary, certain logging companies are making huge profits. This should not be. Rampant and uncontrolled logging has led to environmental problems and disasters, such as floods and landslides, which destroy infrastructure and cause the government to spend money to repair the damage.
“As such, the government needs to introduce a logging tax based on the tonnage of trees felled so that the activity can be controlled, with the long-term aim of having a 20-year moratorium on logging in areas which have been cleared so that they can be rehabilitated.”
Shariffa Sabrina said a carbon tax should be introduced to ensure the industrial sector shared the responsibility in reducing the amount of greenhouse gases released by factories by employing environmental-friendly technologies.
“The government can take a leaf from Singapore and place a tax of between RM10 and RM15 for each tonne of greenhouse gas released by factories.”
Another suggestion Peka has for the budget is the provision of incentives to state governments, that re-gazette logging areas to eco-tourism, which could generate profits in the long term.
She proposed the government set aside an allocation to rehabilitate areas, affected by by bauxite pollution, as well as a reduction in taxes for electric and hybrid vehicles.