TNB tax claim will not lead to higher electricity tariffs, says Finance Ministry

KUALA LUMPUR: The additional tax claim against Tenaga Nasional Bhd (TNB) will not result in costs being passed on to consumers through electricity tariff hikes, says the Finance Ministry.

The ministry said electricity tariffs in Peninsular Malaysia are determined by the Incentive-Based Regulation (IBR) framework and are subject to government review and approval.

"TNB's corporate tax liabilities are not costs that are automatically passed on to consumers through electricity tariffs," the ministry said in a written reply to a question from Datuk Che Mohamad Zulkifly Jusoh (PN-Besut) regarding the implications of the additional tax claim on shareholder dividends and tariffs.

According to the ministry, the claim also does not affect TNB's ability to continue paying dividends, which depends on the company's financial performance, cash position, and dividend policy.

"The government will continue to ensure that consumer interests are protected through existing tariff regulatory mechanisms, without compromising TNB's ability to provide a safe and reliable electricity supply," it added.