SANDAKAN: The Sabah Customs Department seized a local cargo vessel carrying 111,391 litres of petrol suspected to be smuggled to a neighbouring country.
State Deputy Customs Director Siti Mang said the subsidised petrol was valued at nearly RM300,000.
She said the vessel was intercepted at 7.48pm on Nov 19 by enforcement teams from the Lahad Datu and Sandakan Customs branches.
"Acting on intelligence from the Sabah Zone Intelligence Branch, the operation team raided the vessel suspected of carrying petrol intended for smuggling out of the country via Sabah waters," she told a press conference here Tuesday.
The seized cargo ship.
Initial inspections revealed the vessel was carrying 111,391 litres of petrol, with an estimated seizure value of RM228,352.55 and duties and taxes amounting to RM66,835.60.
Siti said the confiscated vessel was valued at RM250,000, bringing the total value of the seizure to RM545,186.15.
The vessel's skipper was also detained during the raid.
Siti said the smuggling operation involved illicitly transporting subsidised petrol to neighbouring countries using local cargo vessels.
The case is being investigated under Section 135(1)(a) and Section 139 of the Customs Act 1967.
Siti said the department would continue to carry out enforcement and work closely with the Ministry of Domestic Trade to ensure there is no leakage, especially subsidised petrol.
"Smuggling not only harms the country in terms of revenue leakage but also poses a threat to national security and the wellbeing of the people," she said.
Meanwhile, on Nov 21, the Tawau Sessions Court heard a case involving failure to pay service tax for 11 taxable periods.
The defendant in this case was a registered person under Category G Professional who provided all employment services and allegedly failed to pay service tax within the prescribed period.
She explained that the total tax that was not paid amounted to RM37,659.80, including the penalty imposed.
The court sentenced the defendant to a fine of RM33,000 in default two months’ jail.’
The court also ordered the defendant to pay the entire tax and penalty amounting to RM37,659.80 before or on Dec 31.
The defendant in the case failed to pay service tax within the taxable period stipulated by the Service Tax Act 2018 under Section 26(8) of the Service Tax Act 2018.
This section provides for a fine of up to RM50,000, or imprisonment for a term not exceeding two years, or both, if convicted.
