KUALA LUMPUR (Oct 10): Perak Transit Bhd has secured approval from the Ministry of Finance (MOF) for an investment tax allowance (ITA) on qualifying capital expenditure in relation to the development of an integrated public transportation terminal in Bidor, Perak.

Its 99.97% owned subsidiary The Combined Bus Services Sdn Bhd (TCBS) received the approval from the MOF on Tuesday, the group told Bursa Malaysia.

TCBS has been granted a 50% ITA on qualifying capital expenditure, which can be applied as a deduction against 50% of the statutory income for the year of assessment in respect of the bus terminal activity only.

However, the incentive is subject to certain conditions, said Perak Transit, with the capital expenditure required to be exclusively for the development of Terminal Bidor Sentral (excluding land acquisition costs).

Additionally, TCBS must invest at least RM130 million in fixed assets (excluding land) for the Terminal Bidor Sentral development within a five-year period, spanning April 28, 2021, to April 27, 2026.

Other conditions include the installation of solar panels in Terminal Bidor Sentral to generate 250,000 kWh of energy and the acquisition of a minimum of 15 electric buses by TCBS by April 27, 2026.

Perak Transit shares closed at RM1.23 on Tuesday, with a market capitalisation of RM912.62 million. Over the past year, the counter has risen 38.2%.