KUALA LUMPUR: The Finance Ministry (MoF) has said that the government did not intend to implement a carbon tax in the near future.

However, the ministry said there might be a need for it in the long-term and would study the feasibility of it as one of the ways to support the nation's goal of reducing greenhouse gas emissions by 45 per cent based on the Gross Domestic Product in 2030, as targeted in the 12th Malaysia Plan.

The ministry said such a study would need to be comprehensive in order to gauge the impact of such a tax on industry and consumers.

"The study will need to refer to the best practices in countries that have implemented the carbon tax," the ministry said on Parliament's website in response to queries from members of Parliament (MPs).

According to the ministry, the carbon tax mechanism will need to be guided by the carbon mitigation policy of the Natural Resources, Environment and Climate Change Ministry and in line with the National Low Carbon Aspiration 2040 plan as targeted under the National Energy Policy.

The ministry added that the formulation of the carbon tax would need to be aligned with fuel subsidies so that the objectives of the two policies did not contradict one another.

"The government will focus on the need to develop the country in a green, sustainable manner that prioritises low carbon development, sustainability, and preservation of the environment," it said. – Bernama