The tax exemption granted to Universiti Tunku Abdul Rahman (UTAR), which was reported to be owing RM83 million to the Inland Revenue Board (IRB), is because the government does not tax non-profit education-based entities.

Prime Minister Anwar Ibrahim said the late approval for an exemption to UTAR was because the university is still under Yayasan Tunku Abdul Rahman, whose structure has not yet been separated between the matters of commercial business companies and education.