Sabah govt postpones SST on seafood exports

 

The Sabah government had planned to impose the state sales tax in May, but exporters were given a three-month grace period which ended last Saturday. (Bernama pic)

KOTA KINABALU: The Sabah government will defer the implementation of the state sales tax (SST) on seafood exports until the economic situation improves.

This decision comes after calls from fishermen and the business community to suspend the tax following the devastating effects of the Covid-19 pandemic.

Deputy chief minister Jeffrey Kitingan said the government would also conduct further studies on the economy in Sabah, especially on the current state of the business environment.

“The government is mindful of the business community’s concern, particularly those in the seafood industry, over the SST,” he said in a statement here today.

“The government understands their concerns, and that it would be unjust to put additional strain on private businesses at this time.

“Therefore, as the agriculture and fisheries minister, my ministry held discussions with the chief minister and we have decided that while we cannot repeal the tax, we have agreed to postpone its implementation to a later date.”

Kitingan hoped the deferment of the sales tax on the seafood export industry would provide breathing room for industry players.

He went on to say that the government would always support the business community, as they were the backbone of Sabah’s economy and the largest job providers in the region.

The Sabah government had intended to impose the tax on seafood exports beginning May 1, specifically 5% for fish and 10% for crabs and lobsters, but exporters were given a three-month grace period which ended last Saturday. - FMT