Indirect victims: Sandakan fishermen protest SST on seafood exports

SANDAKAN – Equipped with banners and placards, over 50 fishermen held a peaceful demonstration to reject the Sabah state sales tax (SST) imposed on seafood export.

Fisherman Afzan Marbin, who represented the group at a press conference today, said that although the sales tax is imposed directly on exporters, the fishermen are still victims of the tax as the exporters buy fish from them at a much lower price to cover the tax.  

“Even now, we are greatly burdened with the increasing prices of equipment such as fishnets, ropes, and boat engines; the maintenance costs for our boats have also increased.  

“If the state sales tax is imposed, we will lose profits as our stable customers – the exporters – will then buy our fish, crabs, and prawns at a much cheaper price,” he said.  

Afzan pleaded with the Sabah government to reconsider the tax’s implementation on fisheries’ exports, and said he hoped it would listen to fishermen in the state, especially small-scale fishermen who only earn enough to get by.  

“We are not working with salaries; we can only earn an income if the weather is good. Right now, out of 30 days in a month, there are only about 10 days when we can go out to sea.  

“Please be considerate of our situation,” he said.  

The peaceful demonstration is similar to what happened in August last year, when fisheries players in the state decided to go on a strike called “Mogok Lautan”, saying that the tax had made exporters purchase their fish at a much lower price to cover the cost of the SST. 

This strike came after the Sabah government told seafood exporters on April 28 last year that the tax will be imposed on seafood exports, specifically 5% on fish and 10% on crabs and lobsters, beginning May 1, 2021. 

Exporters were given a three-month grace period, which ended on July 31.  

This had resulted in state Agriculture and Fisheries Minister Datuk Seri Jeffrey Kitingan, who is also Sabah deputy chief minister, issuing a statement on August 6 that while the government cannot repeal the tax, it can postpone its implementation. https://www.thevibes.com/articles/news/37366/after-mogok-lautan-sabah-puts-off-sales-tax-on-seafood-exports 

The issue resurfaced earlier this month when on January 5, a notice from the state Finance Ministry reminding the fisheries sector to pay its outstanding state sales tax by January 28 set off industry players in Sabah, with them accusing the state government of breaking its promise. 

Yesterday, Kitingan issued a statement denying that he had changed his stand and that the matter is under the state Finance Ministry, which is helmed by Chief Minister Datuk Seri Hajiji Mohd Noor. 

Kitingan said he sympathised with the fish industry players and will bring the issue to Hajiji’s attention.  –The Vibes, January 20, 2022