Duty-free meet ends in deadlock

Labuan: A meeting at Putra Jaya on Thursday between second Finance Minister Datuk Johari Abdul Ghani and a Labuan delegation led by Member of Parliament Datuk Rozman Isli over the Customs Department's proposed curbs on sale and import of beer, spirits and cigarettes on the island ended without any outcome.Another meeting would be held with the second Finance Minister and senior Customs officials on Monday to further discuss Labuan's objections over the Customs move.

Customs restrictions on import and sales of the three items effective Aug 1 would deem about only 10 importers allowed in the trade and almost equal number of retail outlets.

The regulations would mean no sale of the items in coffee shops, grocery stores and no more loose cigarettes available for sale.

Purchase would be limited to 3 cartons of beer, 5 litres of spirit and 3 reams of cigarettes per non-Muslim individual per month.

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The sale would also be monitored through computers placed at the authorised outlets.

Labuan finds the new requirements drastic and would affect the island's economy adversely with the possibility of driving some out of business. They feel the move would do irreparable damage and discontent over the move is high on the island.

It is understood that the Labuan delegation voiced fears that tampering with the duty-free status which was granted to Labuan by the British long before the formation of Malaysia may affect support for Barisan Naisonal on the island in the coming elections.

Rozman conveyed that with Labuan doing badly in tourism and the slow down in oil and gas currently, residents would blame him as the Barisan Nasional MP for not preventing the island's duty-free status being affected.

Labuan Indian Chamber of Commerce and Industry Chairman, Datuk Dahlif Singh, who attended the meeting said the second Minister explained that the new Customs measures were necessitated by the recalibration of National Budget 2016 last January, where it was noted that the Government suffered a revenue loss of RM1 billion from the free ports of Labuan, Langkawi and Tioman.

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he said there was a "healthy" exchange of views with some expressed by Labuan representatives being addressed while some not and one of which was Labuan-bound duty free cargo not actually landing in port.

Among those at the meeting were Chairman of the National Malay Chamber of Commerce (Labuan) Datuk Yussof Mohammad, Chairman of Labuan Chinese Chamber of Commerce, Datuk Wong Kii Yii, Chairman of Kadazandusun Chamber, Ippo, MCA Chairman Datuk Chin Mong Vui, PBS Chairman Datuk Peter Mak, MIC Chairman Ramasamy Rengasamy and tourism representative Tony Tan.

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