PETALING JAYA: The year 2020 has been more than just eventful, which has seen rubber glove companies scoring all time highs in share prices and earnings. But with the bounty of profits, the immediate headache for the industry is a potential windfall tax levy, considering their steep jump in net profit. The research house estimated an increase of 10% in corporate tax payable by gloves manufacturers over the forecast supernormal profit period. The windfall tax was based on the CPO price being above a specified threshold. Maybank IB pointed out that this was scrapped after a month, replaced with a one-off payment to the government equivalent to a year’s windfall levy payment.

Source: The Star August 17, 2020 22:52 UTC