'Withdraw ferry subsidy if goods sent to Labuan cost 6pc more'
Published on: Tuesday, March 31, 2015
Labuan: Chairman of Labuan Consumer Council (LCC), Fauziah Datuk Din said no Goods and Services Tax (GST) should be imposed on goods deliveries here by commercial vehicles via ro-ro ferries since the duty-free island is exempted from GST."If GST was applicable on such goods, the transportation companies should absorb the six per cent since these companies already enjoyed a 50 per cent subsidy on transportation charges for good consigned to Labuan," said Fauziah.Fauziah said the Domestic Trade, Cooperatives and Consumerism Ministry should be alert on this matter. If these companies imposed the GST to their consignees, then the subsidy should be withdrawn from the company that does so."
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She said the Customs had not given a clear picture on this matter except mentioned that supplies of goods and services need not add the GST on the invoice."But then they could always hike the price of goods without reflecting GST on the invoice to avoid the hassle of claiming."The Government had allocated RM17.5 million subsidy under Budget 2013 to subsidise the transportation charges of goods from the mainland to Labuan. This subsidy was extended early this year despite complaints by many that the subsidy had failed to stabilise or lower the costs of goods, including vegetables, constructions materials and other products.Fauziah said the cost of living was already listed as high and Labuan consumers were regularly burdened by the ever-increasing prices of goods.
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"If there was no proper monitoring and control, the GST factor would become another excuse for price hikes, said Fauziah.She noted that even before the implementation of GST, some shops had already increased prices.
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Also as a free port, many items were supposed to be cheaper here but it was not the case. She warned the continued increase in prices would gradually erode the free port status of the island and tourists not feeling the benefits of visiting Labuan.Stay up-to-date by following Daily Express’s Telegram channel.
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