Chong Chieng Jen

KUCHING: The imposition of the State Sales Tax (SST) on imported tyres and tyres attached to imported vehicles in Sarawak will further burden the rakyat (people), said Domestic Trade and Consumer Affairs Deputy Minister Chong Chieng Jen.

He was referring to a recent decision by the state government to impose the SST effective Jan 1.

“The cost of living is already high at present and this action by the state government to impose the SST will not only burden the consumers but also those in various industries such as logistics, transportation, etc.

“At the end of the day, the cost will be transferred to the rakyat.

Chong Chieng Jen

“Thus, I urge the state government to abolish this move which was decided by the state Cabinet,” he told a press conference after officiating at the Chinese New Year gathering at Kampung Selangan Batu in Pending here yesterday.

Chong, who is also the Pakatan Harapan (PH) Sarawak chairman, added there was no need for the state government   to implement the tax as Sarawak was already experiencing good economic growth.

“The state government has always said that Sarawak is rich and has a lot of reserves as well as has the ability to allocate billions of ringgits here and there, so if this is the case, there is no need to add to the rakyat’s burden by imposing sales tax on the tyres used in Sarawak,” he said.

In light of the SST imposition, Sarawak State Treasury has sent notification letters to tyre businesses and companies to register as taxable persons in accordance with Section 10(1) of the SST Ordinance 1998 [Cap.25] and regulation 3 of the SST Regulation 1998.

If a company is found guilty of an offence, it is liable to a fine of RM20,000 and in the case of a continuing offence, a further fine of RM2,000 will be charged for each day the offence continues.

The SST rate imposed on imported tyres is 5 per cent.

Meanwhile, the rates for tyres attached to imported vehicles are RM1 for bicycles and other cycles (including tricycles) as well as wheel barrows; RM2 for pedestrian controlled tractors and motorcycles (engine exceeding 50cc but not exceeding 250cc); RM4 for motorcycles (engines exceeding 250cc but not exceeding 500cc); RM10 for motor cars principally designed for transport of persons, motor vehicles for transport of goods (g.v.w not exceeding five tonnes), trailers and semi-trailers (self-loading or self-unloading trailers and semi-trailers for agricultural purposes, work truck of the type used in factories warehouses, dock areas or airports for short distance transport (electric) and motorcycles (engines exceeding 500cc but not exceeding 800cc); and RM20 for motor vehicles for transport of goods (g.v.w exceeding five tonnes) and motorcycle (engines exceeding 800cc).

Apart from that, tractors designed for agricultural use or hauling roller will be charged at RM50 alongside motor vehicles for transport of 10 or more persons (bus), crane lorries, fire fighting vehicles, concrete-mixer lorries, work trucks of the type used in factories warehouses, dock areas or airports for short distance transport (others), trailers and semi-trailers of the caravan type for housing or camping, tanker trailers and tankers semi-trailers, as well as aeroplane and other aircraft of an unladen weight not exceeding 2,000kg.

Following that, road tractors for semi-trailers, mobile drilling derricks as well as aeroplanes and other aircraft of an unladen weight not exceeding 2,000kg but not exceeding 15,000kg will be charged at RM75 while the highest rate of RM230 will be imposed on motor vehicles for transport of goods (dumpers designed for off-highway use) as well as aeroplanes and other aircrafts of an unladen weight exceeding 15,000kg.