Seafood exporters protest levy
Published on: Tuesday, June 30, 2015
Tawau: Seafood exporters want the State Government to retract the five per cent Sabah Sales Tax (SST) to be imposed on them, claiming it will cripple the industry. This is despite the tax only being applicable on exports of seafood rather than on seafood consumed locally.Over 20 representatives of seafood export companies jointly released a statement, expressing concern as over 10,000 labourers will face retrenchment or salary cuts if the tax is implemented, stunting the growth of the local fishing industry.
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"If the five per cent tax is imposed on exporters, we will be facing a loss while local fishermen and seafood breeders will also feel the pinch as we have to reduce the purchase prices."The price reduction will be between eight to 12 per cent, or else we (the exporters) will be unable to compete with the prices offered by foreign companies such as those from China," they said.They also stated that they fear the SST will "destroy" the local fishing industry because while other countries are seeking to relieve the burden faced by those in the key industry, "Sabah is doing otherwise" (imposing heavy taxes). They are appealing to the state and parliamentary representatives to intervene in the matter.Stay up-to-date by following Daily Express’s Telegram channel.
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The exporters said they had already received official letters, asking them to register at the Local Sales Tax Office (PCJN) under the State Finance Ministry. They said they were worried that if they refused to fill in the tax forms before July 1 (as requested), the Fisheries Department would refuse them export licences.
