SIBU: People in Sarawak and Sabah are hoping the exemption of intrastate flights from Sales and Services Tax (SST) will result in the reduction of airfare cost within the two states.
For one, Minister of Tourism, Arts, Culture, Youth and Sports Datuk Abdul Karim Rahman Hamzah is hopeful that it will be so, considering that flying is a vital mode of travel in these two vast states.
He was commenting on the Malaysian Association of Tour and Travel Agents (Matta) president Datuk Tan Kok Liang’s statement in lauding the federal government’s announcement on exemption of SST next month for all intrastate flights in Sabah and Sarawak.
“I welcome anything that could reduce the burden of consumers including tax exemption on intrastate flight tickets which I hope could reduce the cost of flying within Sarawak and within Sabah,” Abdul Karim, who is Asajaya assemblyman, said.
Sibu Chinese Chamber of Commerce and Industry (SCCCI) president Dr Hii Sui Cheng is also all for tax exemption for intrastate flights in Sabah and Sarawak.
“Yes…I am for tax exemption for intrastate flights although I hope tax exemption is also for all flights between Sabah and Sarawak,” he said.
Former travel agent Robert Tan, meanwhile, said the advantages far outweighed disadvantages of tax exemption on intrastate flights.
“It brings Malaysians closer whether you are from Sarawak, Sabah or the Peninsula,” he said.
He added: “The government will only benefit from the sales of air tickets tax but by imposing this tax, it discourages Malaysians from travelling interstate whereas if it is exempted, people feel cheaper to travel interstate resulting in locals spending more on staying in hotels, sampling even the most expensive fish ‘empurau’ or durians – ‘Musang King’ in West Malaysia.
“And even shopping in Kuala Lumpur, thus, generating more revenue for the government. The positive effects will also be felt by taxi drivers and hawkers among others,” Robert enthused.
As such, he reckoned that the effect would be greater than the tax collections.
“Our country’s economy is slowing down due to over spending by the previous government. Our deficits are climbing, and in order to get the business going, the tax exemption is the top priority and is a step in the right direction.”
Robert asserted that tax exemption will also encourage Malaysians to travel locally.
He opined that the Pakatan Harapan (PH) government should not only give exemption on tax, but more importantly, restrict airlines from jacking airfares especially during school holidays and festivals.
“The government should encourage airlines to increase more flights instead of airfares. For Kuala Lumpur/Sibu and vice versa, the air fare is around RM 1,000 whereas the Kuala Lumpur/Bangkok or Kuala Lumpur/Jakarta and vice versa air fare may only cost around RM600,” he said. -TheBorneoPost
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