It is meaningless to declare Pulau Pangkor a duty free zone if tax exemptions do not apply to vehicles, alcohol and cigarettes, said Beruas MP Ngeh Koo Ham.
"These three items are what visitors hope to buy and benefit from buying them tax free," said Ngeh in a statement today.
In yesterday's Budget 2018 announcement, Prime Minister Najib Abdul Razak had declared that Pangkor would be made a tax-free zone.
Moreover, Ngeh predicted that residents and visitors to the island would not appreciate the extra hassle of being checked by the Customs Department.
He said the authorities would also have to spend extra resources to curb smuggling activities.
In view of this, Ngeh said it would make more sense to make Pulau Pangkor a "GST-free" area.
"I would like to propose that all goods sold in Pangkor be subjected to normal taxes except GST.
"It would help boost the economy of Pangkor without the burden of enforcement against smuggling, as there will be none," he said.
He said without GST, the Pulau Pangkor inhabitants will definitely receive a boost because visitors will likely buy more local produce.
