Carbon Tax Implementation Still Being Refined - Arthur

KUALA LUMPUR, June 16 (Bernama) -- The government is still refining the proposed implementation of the carbon tax, said Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup.

He said the carbon tax, which takes into account industry readiness and the policy framework being developed by the government, would continue to be implemented.

“We will look into the timing of the implementation and decide on it, but it will be implemented in due course,” he told reporters after officiating the Malaysia Palm Carbon Conference (MPC) 2026 here today.

Also present was Federal Land Development Authority (Felda) chairman Datuk Seri Ahmad Shabery Cheek.

Arthur said the implementation of the carbon tax was not intended as a punitive measure, but rather as an incentive to encourage green technology use and reduce carbon emissions.

He also said the government was examining the mechanism for the use of carbon tax revenue, with proposals being considered to channel it towards climate adaptation projects, forest conservation and sustainable land management.

Arthur said the approach was important to ensure that revenue collected could be used to support the sustainability agenda and strengthen the country’s resilience to climate change.

On April 21, Arthur said the government would review the proposed implementation of the carbon tax, taking into account the current energy supply crisis and geopolitical issues.

He said the carbon tax, initially planned for introduction this year and targeted at selected industries such as steel, cement and construction, might be deferred to avoid placing additional burdens on industries and consumers amid current global uncertainties.

Meanwhile, Arthur said the National Climate Change Bill is expected to be tabled in the Dewan Rakyat this year.

He said the bill was important as a step towards strengthening the country’s climate governance in addressing the global climate crisis.

--BERNAMA