KUCHING, Feb 1 — Sarawak DAP chairman Chong Chieng Jen today urged the state government to refrain from imposing a 2.5 per cent sales tax on imported tyres so to lighten the hardship of the people who are already suffering from the impact of Covid-19.
He said the imposition of the sales tax would mean the prices of imported tyres would be increased by 2.5 per cent which the consumers have to bear.
“Tyres are essential to the transportation sectors, and with the imposition of the sales tax, it will definitely exacerbate inflation and burden the people,” he said in a statement.
The sales tax takes effect from January 4 this year.
He said the state government should not put additional costs to business and consumers, especially during this time of economic hardship.
“I, therefore, call upon the government to refrain from implementing the sales tax on tyres so as not to unnecessarily burden the people,” Chong, who is also Stampin MP, said.
He said at present, throughout the whole country, tyres are subject to five per cent federal sales tax, plus another five per cent import duty for tyres imported from outside Asean countries.
He said the state government has the autonomy to impose the sales tax, in addition to the federal sales tax and import duty.
Chong added the state government previously proposed to impose five per cent sales tax with effect from January 1, 2020 but was postponed due to strong objection from the business sector and the economic recession caused by the Covid-19 pandemic.
“Therefore, the five per cent sales tax was not implemented,” he said.
“However, at the end of last year, the state government had proposed to impose a 2.5 per cent sales tax on tyres and the state government’s directive for the imposition of such tax with effect from January 4 was also issued to all relevant stakeholders,” he said.
