THE Sabah government will impose a 5% sales tax on live and frozen fish exports beginning January 1 next year.

The tax will also be imposed on fish bound for the peninsula and Sarawak.

State Agriculture and Food Industries Minister Junz Wong said the move will help ensure a sufficient supply of fish in the state, boost business for local seafood operators and keep prices affordable for Sabahans.

“Seafood is a major resource, hence, the tax is a token of compensation or ‘recovery’ for the state, and will bring in revenue.

“It will also encourage the development of downstream activities, such as processing,” he said after his state budget winding-up speech today.

Wong said the tax is not applicable to processed seafood products, like fish cakes and fish balls, which are subject to the sales and services tax.

“The state government doesn’t want the issue of double taxing to arise.“

Last year, Sabah’s total marine catch was valued at RM914.96 million and aquaculture (RM368.8 million). – November 14, 2018.