KUALA LUMPUR, Oct 6 – Datuk Seri Dr Wee Ka Siong has reportedly sought to reassure parents that Universiti Tunku Abdul Rahman (Utar) will continue offering affordable education despite its ongoing tax dispute.

The MCA president was quoted encouraging continued enrolment, stating that Utar remains committed to keeping tuition fees low.

"Private universities charge up to RM600,000 for a medical degree, but at Utar, it’s just RM280,000,” Dr Wee was reported saying by The Star.

"There is no need to worry, we will retain this advantage. We are managing [the tax issue].”

Yesterday in a separate The Star report, Dr Wee explained that Utar is owned by the Utar Education Foundation, which was established under the Private Higher Educational Institutions Act 1996.

He said the foundation is a non-profit entity and Utar was created solely for the purpose of education — and therefore is exempt from tax.

Dr Wee said he had since met Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister, to address the issue twice.

"Utar was given the letter of clearance all this while. Regarding the RM83 million tax bill, we seek the prime minister’s help to cancel it.

"He said he would assist and asked us to write to LHDN. We did so and followed all the necessary appeal procedures,” he reportedly said.

The controversy arose when the Inland Revenue Board (LHDN) stated that Utar and its foundation are considered separate entities for tax purposes, and thus owe RM83 million in arrears.

Deputy Finance Minister Lim Hui Ying said that Utar has never been granted any tax-exempt status, unlike the foundation, which was granted such an exemption under Section 44(6) of the Income Tax 1967 on July 1, 2003.

Considered a brainchild of MCA, Utar was officially launched in 2002 and now has around 20,000 students across its two campuses in Kampar, Perak, and Sungai Long, Selangor.