'Reconsider 5pc sales tax on seafood' call

Tawau: The Federation of Fishery and Fishing Boat Associations Sabah urged the State Government to reconsider the five per cent Sales Tax on seafood that is set for implementation next month.President, Arsani Arsat said they did not support the new tax and hoped that Chief Minister Datuk Seri Musa Aman would defer its implementation until the best mechanism could be found.

"This is too drastic because it was just approved by the Cabinet on Nov 5 last year. It is not the right time to implement and as a matter of fact, there are so many effects which we think the Finance Ministry is not aware of," he said.

This is in addition to the impending implementation of the Goods and Services Tax (GST) in April this year as well as the minimum wage policy.

Arsani, who is also the chairman of the Tawau Fishing Association, said they would be handing over a memorandum to the State Government before end of this month.

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He said the memorandum would clearly explain the reasons for their objections.

He said this when met after meeting with Tawau MP Datuk Mary Yap at the district education office on Sunday that was also attended by about 50 association members.

Arsani said their objection was basically due to the vague mechanism for the implementation of the new tax and that they were not directly informed about it.

"They want to implement the tax system without talking to the industry players," he said.

With the implementation of the tax, it means that seafood such as fish taken out from Sabah to Peninsular Malaysia and Sarawak would be taxable.

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"This is not in line with the 1Malaysia concept," he said, adding that the seafood products taken out from Sabah are only excess from the domestic market and it did not mean Sabahans will be deprived of consuming fish due to seafood export," he said.

Meanwhile, Yap when asked for comment called on the association to clearly state its facts and rationals in calling for the deferment of the new tax in the memorandum to be submitted to the government.

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