Putrajaya Perdana set to gain
Posted on | September 18, 2007
By BERNAMA
KUALA LUMPUR: Putrajaya Perdana Bhd sees building owners taking advantage of the Budget 2008 tax incentives to move towards “green” buildings, translating into more projects for the group.
To encourage companies to invest in greenhouse gas emission reduction projects, income derived from trading certified emission reductions (CERs) certificates would be exempted from tax, effective assessment year 2008 until 2010.
It is learnt the company could see a 26% increase in earnings because of such tax breaks.
In a statement yesterday, Putrajaya Perdana said the group had the potential to enjoy increased revenue and earnings from the construction of energy-efficient buildings (EEBs), which helped consumers save on energy costs.
“Green” buildings are efficient in their use of energy, water and materials, thus reducing the impact of the building on human health and the environment, due to their design, construction, operation, maintenance and removal.
Green buildings save energy costs to mitigate the effect of escalating energy prices, such as oil and gas and electricity.
For example, total energy consumption of each low energy office (LEO) averages about 2,218 MWh a year compared with a conventional building, which consumes an average 5,290MWh per year.
Putrajaya Perdana is the market leader in the construction of EEBs in Malaysia.
Among its completed EEBs are the energy, water and communication ministry building worth RM115mil and the zero energy office for Pusat Tenaga Malaysia worth RM16.1mil.
It said the tax breaks would benefit Putrajaya Perdana as energy conservation projects involved capital expenditure.
Under Budget 2008, companies providing energy conservation services will get an additional 10-year pioneer status.
Among others, their investment tax allowance will be increased to 100% of qualifying capital expenditure incurred within five years, and would be set off against 100% of statutory income for each assessment.
In addition to savings from lower operating costs, Putrajaya Perdana said buildings accredited under the United Nations Framework Convention on Climate Change’s Clean Development Mechanism programme for reducing emission of greenhouse gases would receive CERs, which can be sold for additional income.
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