Malaysia legislation
Section 28
of ENVIRONMENT (REDUCTION OF GREENHOUSE GASES EMISSION) ORDINANCE, 2023
Section 28
Payment of Carbon levy and financial penalty
⎯(1) The carbon levy for a reporting period shall be paid within thirty days from date of receipt of the notice of assessment issued under section 25(2) or within such extended period as the Controller may approve in writing.
(2)
The payment of carbon levy under subsection (1) may be made by:
(a)
the retirement of Carbon Credit Units in the Carbon
Register account of the registered business entity at such portion of the total carbon levy and financial penalty, as may be determined by Majlis Mesyuarat Kerajaan Negeri by notification in the Gazette ; or
(b)
such form or manner as the Controller may direct in writing, in full or any part thereof, if at the time when payment of the levy is due, there is either insufficient Carbon Credit Units in the Carbon Register account, to pay the carbon levy or if the
Carbon Register account had been closed or suspended.
(3)
The number of Carbon Credit Units that shall be surrendered for retirement under subsection 2(a) is the number assessed by the
Controller to have a total carbon price equal to the amount of the carbon levy assessed, rounded up to the nearest Carbon Credit Units.
(4)
Notice of surrender of any Carbon Credit Units shall be given in a prescribed form to the Registrar by the person who has the Carbon
Register account for the Carbon Credit Units surrendered.
(5)
Upon receipt of the Notice of Surrender, the Registrar shall record the Carbon Credit Units in the Carbon Register as retired and notify any other Registry where the Carbon Credit Units may also be registered as retired, and the registered business entity is treated as having paid the carbon levy assessed against that business entity to the extent of the total carbon price of the carbon credited so surrendered.
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(6)
If the registered business entity shall fail or neglect to make full payment of the carbon levy within the period stipulated under subsection (1):
(a)
a financial penalty of eight per centum or, such other amount as may be determined by Majlis Mesyuarat Kerajaan
Negeri by notification in the Gazette, of the amount of carbon levy assessed and remaining unpaid shall be imposed;
(b)
the Controller shall serve written notice of demand on that registered business entity to pay the carbon levy and financial penalty within thirty days from the date of demand; or
(c)
any carbon levy assessed, and financial penalty imposed, if not paid, after the period stipulated in paragraph (b), may be recovered from the registered business entity as a civil debt due to the Government who may sue for such carbon levy, financial penalty, and costs, on full indemnity basis, incurred for legal proceedings instituted for the recovery thereof.
Cancellation and removal of Carbon Credit Units