KOTA KINABALU – The Sabah government will defer the implementation of the state sales tax (SST) on seafood exports until the economic situation improves.
Deputy Chief Minister Datuk Seri Jeffrey Kitingan in a statement today said the administration will conduct further studies on the health of the business environment in the state.
“The government is mindful of the business community’s concerns, particularly those of the seafood industry, over the implementation of SST.
“The government understands their concerns, and it would be unjust to put additional strain on private businesses at this time.
“Therefore, as state agriculture and fisheries minister, my ministry has discussed the situation with the chief minister, who is also state finance minister, and it was decided that while we cannot repeal the tax, we will postpone its implementation.”
He expressed hope that the move will provide breathing room to seafood industry players.
The state government will always support businesses, which are the backbone of Sabah’s economy, he added.
The announcement comes after fisheries operators in the state launched “mogok lautan”, a strike to stop all seafood exports, in protest against the tax on Monday.
SST had been imposed on seafood exports – 5% per kg for fish, and 10% for crabs and lobsters – on May 1.
Since then, exporters have pleaded for its abolition as the tax affected their sales to the peninsula amid fierce competition from Indonesia and Thailand.
SST is also said to have affected fishermen, with exporters buying their catch at a much lower price or not at all. – The Vibes, August 6, 2021
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