BY ABIDGAIL MERTA GANGGANG
THE State government has endorsed the implementation of State Sales Tax (SST) on the export of designated timber products.
Deputy Premier cum Second Minister of Finance and New Economy Datuk Amar Douglas Uggah Embas said the designated products include sawn timber, veneer, woodchips, fibreboard, particle board, and plywood.
He added that the revenue generated from the SST on the export of selected timber products will be strategically invested in transforming the timber industry.
“The SST rates will range from one per cent to 2.5 per cent and the effective date for the commencement of the sales tax is set for June 1,” he said.
He said this in his ministerial winding-up speech during the State Legislative Assembly (DUN) sitting today.
In the meantime, Uggah also said the focus will be on shifting from primary processing to the production of higher value-added products.
“This move aligns with Sarawak’s vision to have approximately 60 per cent of the export value of timber and timber products derived from high-value items like engineered wood and furniture by the year 2030,” he added.
Uggah also believed that the initiative aims to enhance the competitiveness of Sarawak’s timber industry while promoting the development of sustainable and lucrative sectors within the market.
