Malaysia

Sabah’s RM200 sales tax on scrap iron stays: industrial minister

Levy to balance market prices in Sabah and peninsula, says Datuk Joachim Gunsalam

Updated 4 years ago · Published on 23 Mar 2022 3:10PM

Sabah’s RM200 sales tax on scrap iron stays: industrial minister
Datuk Joachim Gunsalam says the levy was introduced to replace the ban on metal exports imposed temporarily by Sabah to deal with a shortage of scrap iron for steel billet and rebar production. – Pixabay pic, March 23, 2022

by Jason Santos

KOTA KINABALU – The sales tax of RM200 per metric ton on scrap iron exports out of Sabah stays until the revision on the levy is concluded, said Sabah’s Industrial Development Minister Datuk Joachim Gunsalam today, in response to calls for it to be scrapped. 

He told the state assembly that the sales tax on iron export was gazetted on January 27 and came into force on February 1.

The levy was introduced to replace the ban on metal exports imposed temporarily by the state to deal with a shortage of scrap iron for steel billet and rebar production.

“The export ban was introduced to balance the market value of scrap iron in Sabah and the peninsula.

“The levy of RM200 per metric ton was imposed with an expected income of around RM20 million to the state government.

“The state government is aware of scrap metal collectors’ complaints that the levy will affect their income.

“For this, the Sabah cabinet has ordered the Industrial Development Ministry to revise the new rate. The sales tax will be implemented until the revision is concluded,” he said during his winding-up speech.

Gunsalam was responding to the issue raised by Tan Lee Fatt (Likas-DAP).

Besides DAP, the Sabah Scrap Metals Recycle Association had also called for the suspension of the sales tax.

On a question raised by Norazlinah Arif (Kunak-Warisan) on locally made Sabah products, Gunsalam said hologram labels with the “Authentic Sabah” logo are now being printed and will be distributed for free to Sabah SMEs registered with the Industrial Development Ministry.

This will make it easy for buyers to identify Sabah products and support the Buy Sabah Goods campaign launched in Ranau recently.

“Details of the SMEs, products, and company names can also be checked via the ministry’s website to be launched this year,” he said. 

Gunsalam also noted that research and development is also being done to improve SME products, including the shelf lives of consumer products.

He said present assistance to SMEs was still limited to product development like packaging and mechanisation of process.

Gunsalam said this in response to the issues raised by Datuk Jaujan Sambokong (Sulabayan-Warisan) on efforts to improve the shelf lives of consumer products from local SMEs.

Jaujan cited products produced by Thai SMEs, which had shelf lives of more than six months. – The Vibes, March 23, 2022

Related News

Malaysia / 2d

Sabah and Sarawak can become 'kingmakers', determine who will lead Federal government

Malaysia / 2d

Warisan keeps Sabah pact talks open, pushes for local parties to contest 25 seats

Malaysia / 3w

Sabah does not agree to 200-litre diesel quota, forms special committee - Masidi

Malaysia / 2mth

Tsunami alert: Stay calm and obey instructions from the authorities – Hajiji (video)

Malaysia / 2mth

Sabah embarks on five-year initiative to document multiethnic heritage - Hajiji

Malaysia / 2mth

Anwar - Sabah's special grant interim payment increased from RM600m to RM1.5b

Spotlight

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range

World

Indonesia haze forces schools to close as wildfires intensify amid severe dry season

Malaysia

PN walkout over Tabung Haji debate a political misstep, says analyst

By Alfian Z.M. Tahir

Malaysia

51 witnesses to testify at inquest into death of 10-year-old boy found unconscious in school toilet

Malaysia

Female student arrested for allegedly hurting classmate with kerambit at school

World

Colombia quake death toll hits 111 as rescue teams race to find survivors

World

Trump secretly switched to third aircraft in Türkiye over Iran assassination threat

Malaysia

Anwar questions PN’s priorities after Tabung Haji RCI walkout

Malaysia

MACC, police probing TH after RCI findings as govt warns no one will be spared

By Alfian Z.M. Tahir

You may be interested

Malaysia

EC: No by-election for Subang parliamentary seat

Malaysia

Man, 49, found dead in Banting plantation

Malaysia

Wong Chen resigns, paving way for parliamentary seat vacancy

Malaysia

Is reputation worth so much more than a person’s life?

Malaysia

Step-grandmother to be charged with murder of 16-month-old baby in Kota Tinggi

Malaysia

Nine-year-old tahfiz pupil allegedly bullied, beaten by senior student

Malaysia

78-year-old woman killed in crocodile attack while collecting snails in Sarawak

Malaysia

Opposition MPs leave Dewan Rakyat, do not take part in RCI TH Minister's briefing