On Friday’s BT, I was duly surprised by the news that Malaysia’s tax department has decided to scrap the windfall tax on its Indepedent Power Producers that it announced only a few months ago. [Click here for background – http://taxwithedgar.blogspot.com/2008/07/tax-on-your-windfall.html%5D
Don’t pop the champagne yet. The windfall tax will however be replaced by a one-off payment.
Either way, the Government will still get the IPP’s monies. Renaming it to “one-off” would satisfy the rating agencies.
Another “one-off payment” next year? We will wait and see.