Abg Johari to address GST on rural air services tomorrow

0

KUCHING: Tourism Minister Datuk Amar Abang Johari Tun Openg will address the issue of Goods and Services Tax (GST) for rural air transportation during winding-up for his ministry during the State Legislative Assembly (DUN) sitting tomorrow.

“Actually, I’m going to announce it during my winding-up speech – it will be part of the subjects. Why don’t you wait for my winding-up speech on Tuesday,” Abang Johari, who is also Satok assemblyman, told reporters after officiating at the Folks Games Mini Carnival at Dewan Merpati Jepang, here, yesterday.

He was asked to comment on calls by several quarters, including Second Resource Planning and Environment Minister Datuk Amar Awang Tengah Ali Hasan, for the rural air transportation in the state to be exempted from GST. Awang Tengah, on April 9, had asked the federal government to exempt flights in Sarawak and Sabah – particularly for the rural air services (RAS) – from GST, stating that Sarawakians are largely dependent on air travel because of the vastness of the state and its challenging terrain.

“It is only fair that RAS fares are zero-rated and excluded from GST, and it should include flights in and out of the state as this is an essential mode of transport,” he was quoted as saying in Lawas.

Piasau assemblyman Alan Ling, during his debate in DUN last week, said he had received many complaints from Sarawakians, especially those from the rural areas who were most effected and felt ‘victimised’ by the costly rural airfares charged by MASwings, a subsidiary of Malaysia Airlines.

He said a MASwings flight from Miri to Lawas, a 45-minute trip, costs about RM120 to RM130

one-way, while from Miri to Bario it is about RM120 per trip.

“I wonder why MASwings can price such short trips so highly and yet, still complaining of not making money,” Ling said.

The state DAP lawmaker wanted the state government to step in and demand for a review and reduction of domestic airfares, as well as to push for exemption of GST on domestic airfares.

“If they continue offering such outrageous airfares, and keep using lame excuses of being unable to make profits, then Sarawak should find alternatives that offer more competitive airfares to the people.

“Perhaps the state should start its own domestic airline, or welcome more investors to operate affordable and efficient domestic flights.”