Govt to study need to raise limit on taxed items' purchase

The government will study the need to increase the limit for the purchase of taxed items in Langkawi as it had not been amended in a long time, the Dewan Rakyat sitting was told today.

Deputy Finance Minister Datuk Ahmad Maslan said at present, the tax exemption for tourists staying in Langkawi more than 48 hours was only RM500.

"The increase in limit will benefit tourists and contribute to trade and economy in Langkawi," he said when replying to a question from Datuk Nawawi Ahmad (BN-Langkawi) who asked if the government had plans to increase the tax exemption limit as the act was amended in 1986.

However, Ahmad said, the increase would be appropriate and not too much that it would lead to other implications.

The tax exemption for such items as chocolates, clothes, glass products, alcohol and cigarettes had been allowed for tourists since 1988 through the Customs Duties (Exemption) Order 1988.

Replying to a supplementary question from Nawawi if the limit for goods tax exemption for tourists would be extended to Langkawi residents who left the island for more than three days, Ahmad said they would also enjoy the benefit.

"We want to be consistent, if the tourist gets 48 hours, then the Langkawi resident also gets 48 hours. I think this is the best news for the Langkawi residents," he said.

Ahmad said that the collection for the 30 per cent flat rate tax at the Kuah jetty last year was RM442,527, while at the Langkawi International Airport was RM55,650.

In 2013, the Kuah Jetty recorded a tax collection of RM452,241 and the Langkawi International Airport had RM63,205.