LABUAN: Business chambers in Labuan have been told to submit economic impact reports following a decision to limit the volume of non-taxable alcoholic drinks that can be brought out of the duty-free island.
Labuan Corporation (LC) chief executive officer Rithuan Ismail said the LC, being Labuan’s sole local authority, has limitations when it comes to customs taxation policy and this includes matters involving the customs duties order.
He said while LC understands the concerns of various business chambers on the issue, the local authority cannot interfere with the customs policy.
“We, too, have limitations in executing power,” he told Bernama today.
Rithuan was responding to concerns raised by Labuan business chambers on what they view as strict enforcement by the customs department over the new restrictions on duty-free alcoholic drinks being taken out of the federal territory.
Labuan Chamber of Commerce (LCC) chairman Daniel Doughty on July 3 said he had received complaints that travellers were only allowed to bring out a total of one litre of alcoholic drinks, while beer was limited to only four cans.
Prior to this, a maximum of six litres, or a crate of 24 cans of beer, were allowed to be taken out without being taxed.
Rithuan said once the impact report is submitted, LC would help provide input to the finance ministry in the interest of Labuan’s economy.
“We are not only focusing on the customs taxation that has an impact on Labuan’s economy but also other aspects such as basic amenities, including frequent water and power supply disruptions.
“LC has done a number of studies on obstacles that affect the progress of Labuan’s economy, but there are certain things we cannot simply disclose publicly, and we hope business chambers can understand this situation,” he said.
