LABUAN: Labuan will remain a duty-free island and any effort to abolish its tax-free status will be opposed.
Announcing this today, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi assured the people of Labuan that they would continue to enjoy tax exemption.
“If there is any effort to eliminate the duty-free, I will be the first minister to oppose it.
“I understand there are issues on smuggling but it should not be the fault of the Labuan people as this is a matter of enforcement.”
He was speaking at the launch of the Labuan Umno divisional delegates meeting at Palm Beach Resort, here.
Zahid, who is also Umno vice-president, said the duty-free status would be enhanced, adding that enforcement issues will be discussed in a special task force meeting.
He said the task force would engage with the Finance Ministry as well as Customs Department in matters related to tax-free and smuggling activities.
The special task force, to be chaired by Zahid, was established recently to look into ways to revitalise Labuan’s economy.
In his speech, he announced that two former Labuan Members of Parliament, Datuk Suhaili Abdul Rahman and Datuk Yusof Mahal, will be part of the task force committee.