KUALA LUMPUR: It is fairer to introduce the one-off corporate tax for companies making more than RM100mil, known as prosperity tax (cukai makmur), instead of a windfall tax, says Datuk Seri Mustapa Mohamed.

       The Minister in the Prime Minister's Department said the government received the proposal to introduce a windfall tax after several companies were known to rake in a huge amount of profits.

       "The government has given its explanation to the people. If we introduce the windfall tax, it could affect the investment climate in the country.

       "This is because it is seen as an unfair approach," he told a press conference in Parliament on Friday (Oct 29).

       In Budget 2022, the government plans to introduce a one-off corporate tax of 33% for any company with an income over RM100mil for the year 2022.

       This tax is known as "cukai makmur" (prosperity tax). The corporate tax for income below RM100mil remains unchanged at 24%.

       However, the prosperity tax is not targeted at certain companies but covers all companies that are making more than RM100mil, said Mustapa.

       "This is a fair approach considering that the country is facing various challenges.

       "These companies should contribute via a one-off tax, and not continuously. This is also not expected to affect the investment climate for companies that can afford to contribute to the development of the country," said Mustapa.