Tasco gets tax incentive approval from MIDA for logistics services activities
10 Sep 2020
Tasco Bhd has received approval from the Malaysian Investment Development Authority for a second round of tax incentive to carry out integrated logistics services (ILS) activities as an expansion project.
In a filing with Bursa Malaysia, Tasco said the tax incentive will enable the group to enjoy income tax exemption via investment tax allowance (ITA) of 60% of its qualifying capital expenditure incurred within five years.
The ITA can be offset against 70% of statutory income for each year of assessment, it added.
“Amongst the terms and conditions stipulated in the approval letter, the company shall make additional investments in capital expenditure related to logistics of at least RM240 million for a period of five years,” said Tasco.
The group said that at this juncture, the board has yet to quantify the amount of tax saving from the ILS incentive as the total investment cost has yet to be finalised.
Tasco added that it has made an appeal on certain other terms and conditions stipulated in the approval letter, and is currently awaiting the results of the appeal.
Tasco’s share price closed up eight sen or 5.84% at RM1.45, a 17-month high, for a market capitalisation of RM290 million. Some 774,400 shares were traded.
The counter has been on an uptrend recently, gaining 71% since Aug 26 when it stood at 85 sen.
Source: The Edge Markets