SST exemption should extend to inter-state connections too, says Lukanisman
MIRI: Sibuti MP Lukanisman Lokman said Sales and Services Tax (SST) exemption for intrastate flights within Sarawak is welcomed but not extended to inter-state connections and putting a stop to festive fare hikes.
He said tax exemption for MiriKota Kinabalu route should be included as this route has a high load factor of up to 85 per cent based on Mavcon briefing among the MPs at the last Parliament session.
He made this comment on the announcement of SST exemption on the said routes and the reduction of airfare within the two states.
“While this tax exemption will reduce airfare fee a bit, the government should really look into major problem on domestic flight like airlines’ tendency to jack up airfare during festive seasons and school holidays,” he lamented.
The first term MP said people want cheaper domestic fares.
“Sometimes, ticket fare for MiriSibu route is higher compared to that for Miri-KLIA route and flying is a vital mode of travel particularly for Miri-Limbang route because we need to go pass Brunei from Miri to reach Limbang,” Lukanisman said.
Lukanisman said Sarawak MPs will support government policy in reducing financial burden of the people.
Malaysian Association of Tour and Travel Agents ( Matta) president Datuk Tan Kok Liang in a statement issued in Kota Kinabalu on Aug 14 lauded the federal government’s announcement on the exemption of SST next month for all intra-state flights in Sabah and Sarawak.
Matta has earlier this month appealed to the Ministry of Finance for all domestic air tickets be exempted from service tax and that the government could collect much more SST from higher spending on other goods and services.
Tan said exempting service tax on all domestic air tickets is to ensure other states in Malaysia will also appeal to tourists as holiday destinations and overcome the grouse of tourists especially those bound for East Malaysia complaining of high airfares from Kuala Lumpur.
He was reported as saying that the high costs of air travel especially between the peninsula and East Malaysia have driven Malaysians to opt for regional travel instead of local holidays.
“Service tax exemption on all domestic air tickets would benefit the states and the country’s economy as inbound tourism receipts amounted to RM82.1 billion last year, and domestic tourism RM83.1 billion,” he added.
Tan said the resulting multiplier effects would inevitably add to government revenues through enlarged economic activities from visits between the peninsula and Sabah and Sarawak.
Air transportation for many East Malaysians is considered a necessity in view of its geographical landscape and the lack of adequate land transportation.