SUPP Youth adds voice to call to defer SST on imported tyres
KUCHING: Sarawak United People’s Party (SUPP) Youth secretary-general Milton Foo is urging the Sarawak government to put off the State Sales Tax (SST) on tyres imported into the state.
He said he was approached by Sarawak Tyre Dealer Retreader Association recently on the circular from the state Treasury Department, signed by the Comptroller of the SST, and was told that the seven-day deadline given to them to register for the tax was very short.
Foo said according to the circular addressed to the association, dated Jan 23, 2020, they are required to register to be taxed on or before Jan 31, 2020.
“Why was such a short notice given by the state Treasury Department? Only seven days are given to the tyre dealers and stakeholders to comply with the circular.
“Moreover, isn’t it tantamount to double tax system, as Sarawakians are currently also paying five per cent Sales and Service Tax to the federal government?” he said in a statement yesterday.
He pointed out that with the new state policy in place, Sarawakians would need to pay an additional five per cent in SST on imported tyres, saying at the end of the day, the burden will inevitably fall onto the end consumers.
“The costs of transportation and logistics in Sarawak may be increased due to this tax policy, causing multiple chain reactions, and eventually a price hike on commodities and goods in Sarawak,” he added.
He urged the Sarawak government to review the decision to impose SST on imported tyres into the state, or to suspend or even abolish the tax especially in the light of the present global economic downturn and high cost of living.
Besides that, Foo said the recent coronavirus outbreak has also resulted in a global economic slowdown, directly impacting businesses in the state.
“As a caring government, we should not burden our people by paying more or additional tax, but eradicate and ease the financial burden of the people.”
The SST on imported tyres and also on tyres attached to new vehicles imported into the state was revealed by Deputy Minister of Domestic Trade and Consumer Affairs Chong Chieng Jen during a press conference following an event here on Sunday.
Chong said the tax was not fair to Sarawakians who are already struggling with the increasing cost of living, and urged the state government to abolish the ‘tyre tax’. According to the state Treasury Department circular, imported tyres would be charged five per cent SST per piece while tyres attached to vehicles being imported into the state would be charged based on the size of the vehicles.
New bicycles or other vehicles using the same tyres would be charged SST of RM1 per tyre; RM2 per tyre for motorcycles exceeding 50cc but not exceeding 250cc; RM4 per tyre for motorcycles above 250cc but not exceeding 500cc; RM10 per tyre for cars or vehicles not exceeding five tonnes; RM20 per tyre for vehicles weighing more than five tonnes and motorcycles exceeding 800cc; RM50 per tyre for lorries, tractors and trailers; and RM230 per tyre for aircraft with unladen weight exceeding 15,000kg.
The circular also stated that these businesses dealing with tyres and selling of imported vehicles must register as a taxable person in accordance with Section 10(1) of the State Sales Tax Ordinance 1998, and Regulation 3 of the State Sales Tax Regulation 1998, failing which his or her company will be guilty of an offence and liable to a fine of RM20,000, and in the case of continued offences, a further fine of RM2,000 for each day during which the offence continues.
The circular instructed business owners to fill in a form to be submitted in duplicates to the Comptroller of the State Sales Tax at the State Treasury Department on or before Jan 31 this year.