Customs rule on duty-free drinks will hit Labuan’s economy, says Kitingan

 

Jeffrey Kitingan has urged Putrajaya to hold an open dialogue with Labuan folk and review the new customs rule on duty-free alcoholic drinks. (Bernama pic)

PETALING JAYA: A recent decision to limit the number and amount of non-taxable alcoholic drinks that can be taken out of Labuan could severely affect the duty-free island’s economy, warns Sabah deputy chief minister Jeffrey Kitingan.

According to The Borneo Post, Kitingan said Labuan’s duty-free status was crucial to tourism and local commercial activities on the island and that the new rule would “jeopardise” its economy.

The Parti Solidariti Tanah Airku (STAR) president urged Putrajaya to hold an open dialogue with Labuan folk and review the new customs rule.

On Monday, Labuan Chamber of Commerce chairman Daniel Doughty said he had received complaints that travellers were only permitted to take one litre of alcoholic drinks out of the island, while beer was limited to only four cans.

Previously, travellers could take with them a maximum of six litres of alcoholic drinks, or a crate of 24 cans of beer, out of Labuan without being taxed.

Meanwhile, Kitingan asked Putrajaya to provide updates on the proposed construction of a bridge to connect mainland Sabah to Labuan.

“Even if this issue falls outside the Sabah government’s jurisdiction, it is a topic of substantial public interest, frequently spotlighted during elections.

“A bridge can be an infrastructure project that can bolster Labuan’s connectivity and economic dynamism.” - FMT