The Leading Journal for the Tyre Recycling Sector

The Leading Journal for the Tyre Recycling Sector

Sarawak Association Fights 5 pct Tax on Tyre Imports

As Malaysia seeks routes to deal with its waste tyre problems, Sarawak Tyre Dealers And Retreaders Association chairman Lim King Hong said that a tax on imported tyres was impractical because even recycling companies are short on supply of used tyres.

“There is a high demand for used tyres for use in other purposes, and in fact, the demand is so high there is an acute supply issue.

Tyre recycling companies have been reaching out to us for supply, but we just cannot give them enough used tyres.

“Therefore, the government’s tax imposition does not augur well,” he said.

Lim was commenting on the explanation provided by Second Finance Minister Datuk Amar Douglas Uggah Embas in his winding-up speech at the State Legislative Assembly.

Uggah has said the rationale for imposing this tyre sales tax is to defray the expenses of disposing used tyres throughout the state.

“This is part of the tyre industry’s contribution towards conservation of the environment,” said the deputy premier.

Lim pointed out that the tyre sales tax will also create inflation and affect consumers, whom the economic crisis had badly hit.

He however noted that the association understood that the government needed income from tax.

“However, in so doing, they should not tax on necessities like tyres because this will affect all consumers, including transport companies, owners of bicycles, motorcycles, cars, vans and the likes, and public transport companies,” he said.

Lim said the tyre sales tax was supposed to be imposed from 2020, but with the request by the Sarawak Chinese Chamber of Commerce and Industry, a tax was reduced from five to 2.5 per cent.

“The government has indicated that the imposition of the 5 per cent tyre tax will be from 2023. We urge the government to reconsider this move,” he said.

There are obviously more pressures at play in Sarawak than a simple objection to a tax imposition. However, regardless of where in the world tyres are sold, there needs to be some form of taxation or funding for recycling to take place, safely and in an environmentally friendly manner.

Source and Image: Borneo Post