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Sabah 7.5% Sales Tax – I will step down if CM can prove me wrong December 4, 2008

Posted by wong jimmy in Oil Palm.
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I will step down as assemblyman if Chief Minister Datuk Seri Musa Aman can prove that the smallholders are not being taxed the Sabah 7.5% Sales Tax.

I had already highlighted the error many times including at the State Legislative Assembly and even shown proves to the Chief Minister during the recent assembly.

It is the state government duty to correct what is wrong, I have come out with proves and many had also highlighted the matter in the news, but nothing is being done.

I will step down if CM can prove that I am wrong, and I hope CM too will do the same if he is wrong.

On the price issue I call the State Government to act immediately to help the oil palm sectors in the state that are now feeling the pressure and hard pressed due to the falling price of the commodity.

Without any concrete action from the government the situation will worsen and Sabah as the largest oil palm producers will become history.

I had many times urged the state government to review the 7.5% Sabah Sales tax imposed on the industry and had shown prove that the tax  has been passed to the smallholders no matter how small their plantation are.

If the situation is allowed to go on, it not only burden the planters especially smallholders but also make the state unattractive to investors.

I hope this issue will receive the government attention and drastic action as I had showed prove to the Chief Minister at the recent State Legislative Assembly that the smallholder are the one paying the 7.5% Sales Tax, though in the first assembly CM had told me that the government never taxed the small holders and only the big companies and I had proved to him that he got the wrong information.

With the Sabah Sales Tax matter coming to light and more people understanding the real situation, I hoped the state government would direct miller not to impose the 7.5% sales tax to planters.

Apart from that, the government should come out with a statement and explanation on what steps is being done, already done and will be done in connection with the fallen price of oil palm.

The people in the oil palm sector and me would like to know whether the special committee to tackle the issue had been set up? If already set up, what had been done to address the situation?

What I had voiced out on behalf of the oil palm industry should not be taken lightly as the price had gone down by about 70 percent compared to three months ago and cause loses not only to small holders but also big companies, millers, producers and fertilizer companies.

In fact, I am surprised to hear that a big listed company had to cut 20 percent of its employees salary following losses caused by the fallen price of oil palm. If not action is taken, I am sure the government plan to develop the Palm Oil Industry Cluster (POIC) will not bear fruit and POIC will be a ‘white elephant’.

 

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