Sri Tanjong Assemblyman Chan Foong Hin strongly criticised the sudden implementation of state sales tax on seafood export, and questioned the legality of the implementation, as it is never laid for debate in state assembly sitting.
The DAP Sabah Vice Chairman today disclosed to media that, he has received numerous complaints from the seafood industry player that, they have been by Custom Department, asked to fill in the Form 1 “Application for a License as a Taxable Person”, under State Saes Tax Regulations 1999, Regulation 4(1).
The complainers told Chan that, 5% state sales tax would be imposed on their products, exported seafood. They received the order last week without any earlier notice and have been told that even all those exported seafood started 1st of January should be declared it’s taxable amount.
According to the complainer, a paper of “State Sales Tax (Rate of Tax) Order 2014” has been circulated to them. The paper has stated that, in exercise of the powers conferred upon him by subsection 6 (1) of the State Sales Tax Enactment 1998 [No.12 of 1998], the (state) Minister of Finance hereby makes the following order, state sales tax with 5% rate, shall be levied on the sale of the taxable goods, which are marine and freshwater fish, crustaceans, molluscs, aquatic plants which include seaweed and other aquatic invertebrates whether live, fresh, chilled of frozen fit for consumption taken out of Sabah.
The paper dated 5th November 2014, and undersigned by Datuk Seri Panglima Musa Haji Aman, as his capacity as state Finance Minister, has a footnote sounds that “to be laid on the table of the Legislative Assembly pursuant to subsection 6(3) o the State Sales Tax Enactment 1998”.
The state assembly sitting in last November started from 7th and ended on 13th, only have passed the Supply Bill 2015, Electronic Government Activities Bill 2014, and five enactment amendments, namely, the Pension Bill (Head of State) and State Constitution Bill (Sabah) to change the term “Pemimpin Kemajuan Rakyat” to “Pemimpin Pembangunan Masyarakat”, Sabah Rubber Industry Board Bill, Forestry Bill (Forest Reserve), and, Members of Administration and Members of the State Assembly (Remuneration) Enactment 1981.
There is nothing passed in the last state assembly sitting as State Sales Tax (Rate of Tax) Order 2014, under State Sales Tax Enactment 1998, Chan emphasised.
“What have Musa Aman done in the last assembly sitting was purely disclosing that a new seafood export tax would be imposed in this year without mentioning how much of the levy, and when to started with. We could not assume the State Sales Tax Enactment 1998 have been amended when there is no debate on the subject thoroughly. Musa should tell us how much going to be collected with this tax.” Chan pointed out.
The state government should have conducted stakeholder meeting to discuss the implementation of the proposed new sales tax, such as hearing the views from Sabah Fisheries and Fishing Boat Owners Association Federation.
“I am in the view of against the move as it contradicts with the Federal Government’s announcement that there would be no Goods and Services Tax (GST) for fishery exports. Then why should the state have?” Chan asked.