Huge GIFT for oil and gas big boys

Hot on the heels of the highly generous 12-year tax-free status for Lynas Corporation comes another huge ‘GIFT’ – this time for the oil and gas big boys. 
 
While the government seems intent on cutting subsidies on selected essential goods used by ordinary Malaysians, it is dishing out more corporate subsidies, oops, I mean ‘incentives’, to a small band of lucky firms in the lucrative oil and gas sector.

There is a 100 percent 10-year ‘Investment Tax Allowance’ for firms involved in petroleum refining.
The Edge notes that among the US$20bn oil and gas projects in 2012 are the Rapid project in Pengerang, the oil and gas terminals in Johor and Sabah, and the regasification plant in Malacca.

Apart from this, LNG trading companies will enjoy a three-year 100 percent income tax exemption under an appropriately named GIFT (Global Incentive For Trading) programme. What is the justification for the 100 percent income tax exemption?

While the government dishes out generous tax exemptions to the corporate sector, it is now mulling a Goods and Services Tax that will hit many ordinary Malaysians, who were previously exempted from income tax.
It is policies such as this that have contributed to the widened gap between the rich and poor.