Jonathan Chai
KUCHING: Associated Chinese General Chambers of Commerce and Industry (ACCCIS) will arrange a meeting with the Comptroller of the State Sales Tax (SST) to deliberate on matters raised by the Sarawak Tyre Dealers and Retreaders Association.
Its secretary-general Jonathan Chai said he was aware that the Sarawak Tyre Dealers and Retreaders Association had called upon the state government to waive the five per cent SST on imported tyres for last year and abolish the 2.5 per cent SST for this year.
“I think the industry players have approached many organisations including Sarawak Federation of Chinese Associations, and we (ACCCIS) are among the last approached by them. However, we managed to help in slashing the SST rate for them and yet they (industry players) are not satisfied. I have done my best and I have drafted the grounds of appeal for them,” he said when contacted yesterday.
According to Chai, the major issue faced by the tyre industry players was not so much on the implementation of the SST, but the mechanism of enforcement was not there.
He said without the mechanism of enforcement being put in place, unfair competition might arise.
As such, he said he would talk with the Comptroller of the SST hopefully next week to ‘voice out the problems’.
During a press conference yesterday, president of Sarawak Tyre Dealers and Retreaders Association Lim King Hong said they did not charge their customers the five per cent SST last year, and had not started charging the 2.5 per cent SST so far this year.
“We insist that the Sarawak government should abolish the collection of SST on imported tyres. The state government should not further burden Sarawakians especially during these trying times,” he said at their premises in Jalan Petanak here.
The Sarawak government imposed the five per cent SST on imported tyres from Jan 1 last year.
The SST rate was reduced to 2.5 per cent, effective Jan 4 this year, following requests from the association as well as Sarawak Bus Transport Companies Association, Sarawak Lorries Transport Association and Kuching Bicycle and Motor Traders Association.
It is understood that imported tyres in Sarawak refer to all motor vehicle tyres including those used by bicycles given that Sarawak does not manufacture tyres.
The SST of 2.5 per cent for this year and five per cent for last year are on top of the federal government’s 10 per cent sales tax.
As stipulated under the State Sales Tax Regulation, 1998, the offenders are liable to a fine of RM20,000 and for subsequent offences, a fine of RM2,000 is imposed for each day the offence continues to be committed.
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