Labuan: The proposal to tighten the regulation on vehicle movement out of Labuan, a duty-free haven will be raised again in the next Cabinet meeting, said Labuan MP Datuk Rozman Isli.He said the decision to broach the issue at the next Cabinet meeting was stated by Prime Minister Datuk Seri Najib Tun Abd Razak during the Cabinet meeting Tuesday.
"This evening, Labuan business chamber leaders and I will meet second Finance Minister Datuk Johari Abdul Ghani on the issue," he told Bernama.
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Rozman said he would propose to the Finance Ministry via the Second Finance Minister for the current RM10 bond system via e-VIS (Electronic Vehicle Information System) card to be retained.
"I want the current bond system, of which the cost is minimal, to be continued. If anyone is found violating the regulation, the Customs Department could impose the new regulation on the errant party as a lesson.
"Should the offence be repeated, the Customs Department may enforce the action as proposed in its schedule.
We should penalise offenders but not burden the public who generally obey the law," he said.
On another Customs enforcement proposal to reduce the number of duty-free shops to only 10 selected stores, Rosman said the more than 50 active duty-free shops should be allowed to continue operating to ensure a vibrant tax-free environment in Labuan.
"I agree that the import quantity should be controlled. But I want all existing duty-free shops to continue their operations," he said.
He said public premises, restaurants and coffeeshops should also be allowed to buy and sell tax-free goods rather than be subjected to strict control.
"We need to ensure that Labuan's economy which is rather sluggish currently, would not be disrupted or be allowed to worsen," he said.
Labuan Customs Department on July 19 held a dialogue session with business chamber leaders, hoteliers and local traders with regard to the proposed 'Bank Guarantee' requirement on vehicles that leave Labuan via ferry for the mainland, and the proposal to reduce the number of duty-free shops.
The proposals are meant to curb smuggling of tax-free items as well as cases where Labuan-registered vehicles without Customs declaration are not brought back after the 90-day period (in a year), and reduce revenue losses amounting to almost RM1 billion as disclosed by the prime minister in his budget speech.
However, local businessmen, traders and non-governmental organisations protested against the move which they claimed would dampen the economy and Labuan's tourism sector.
Meanwhile, vehicle owners would be required to pay a deposit which could amount to several thousands of ringgit, depending on the vehicle engine capacity, if the proposal were approved.
