KUCHING: Deputy Minister for Domestic Trade and Consumer Affairs Chong Chieng Jen is urging the Sarawak government to abolish the state sales tax (SST) on imported tyres and tyres attached to new vehicles being imported into Sarawak which came into effect on Jan 1, this year.
He said this following a recent circular from the state Treasury Department to businesses selling imported tyres and businesses selling new vehicles instructing them to register with the department and pay the SST.
He said the rate at which the SST is being charged on new tyres being sold or tyres attached to new vehicles being imported into the state would burden not only the consumers but also businesses dealing with transportation and logistics.
“The state government through Chief Minister Datuk Patinggi Abang Johari Tun Openg always boasts that Sarawak is a rich state with a lot of reserves, and spends billions of ringgits on development projects here and there.
“So why would the state government want to burden the ‘rakyat’ by imposing this SST on tyres?
“This is not fair to Sarawakians. I urge the state government to overturn the implementation of the SST,” Chong told reporters this morning.
Earlier, Chong attended a Chinese New Year gathering with the people at Jalan Selangan Batu near Pending here.
According to the state Treasury Department circular to businesses dealing with tyres shown by Chong, 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 piece of tyre, RM2 per piece for motorcycles exceeding 50cc but not exceeding 250cc, RM4 per piece for motorcycles above 250cc but not exceeding 500cc, RM10 per piece for cars or vehicles not exceeding 5 tonnes, RM20 per piece for vehicles weighing more than 5 tonnes and motorcycles exceeding 800cc, RM50 per piece for lorries, tractors and trailers, all they way to RM230 per piece for aircrafts with unladen weight exceeding 15,000kg.
According to the circular, 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 January 31 this year.