Chong Chieng Jen
KUCHING: Democratic Action Party (DAP) Sarawak chairman Chong Chieng Jen has called on the Sarawak government to do away with the State Sales Tax (SST) on tyres as it is a burden to consumers and business sectors.
He said tyres were currently subjected to the five per cent Federal Sales Tax and an additional five per cent import duty was imposed on tyres outside Asean, and on top of that, the state government has the autonomy to impose the SST.
Although the initial five per cent SST was reduced by half to 2.5 percent starting Jan 4 this year, Chong said the prices of tyres would still increase by 2.5 percent.
“To the business sector and consumers in Sarawak, if this 2.5 percent SST were to be implemented, prices of all tyres in Sarawak will increase by 2.5 percent, not a reduction in tyre prices as portrayed earlier by certain news reporting. It is effectively an imposition of SST from 0 percent to 2.5 percent.
“Tyres are essential to all transportation people and goods. With the imposition of this 2.5 percent SST, it will definitely exacerbate inflation and burden the people. As such, the State Government should not put additional costs on businesses and consumers, especially during this time of economic hardship.
“I thus call upon the government to refrain from implementing the SST on tyres so as not to unnecessarily burden the people,” he said
The SST on tyres came into effect on Jan 1 last year, where imported tyres would be charged five percent SST per piece while those attached to vehicles being imported into Sarawak would be charged based on the size of the vehicles.
Stakeholders and local tyre vendors have since voiced their concerns and called on the state government to defer its implementation.
In a letter to the Associated Chinese Chambers of Commerce and Industry (ACCCIS) last month, the Comptroller of SST had notified that the five per cent SST was reduced by half from Jan 4 this year until further notice.
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