ALL shellfish and molluscs, as well as salted fish, have been excluded from the sales and services tax, said Finance Minister Lim Guan Eng.

The exemptions were made following feedback that certain shellfish were not considered luxury goods and were in foods consumed by those in the lower-income group, he said at a press conference in Putrajaya today.

Lim said dealers are not to charge or pay the 10% sales tax with immediate effect. 

The SST regime, which began on Saturday, was imposed on all crustaceans, including rock lobsters, lobsters, crabs, Norway lobsters, cold-water shrimps, and prawns.

It was also imposed on molluscs, including oysters, scallops, mussels, cuttlefish, squid, clams, cockles, ark shells, and abalone.

Lim said the government was intent on imposing a 10% sales tax on luxury shellfish, but this had resulted in all other seafood used by middle- and low-income groups being subjected to the tax.

“(We will) allow seafood that middle- and low-income groups can also enjoy without taxes,” Lim told reporters in Putrajaya today. 

Lim apologised for including seafood items such as cockles, which feature in many hawker foods, on the list.

“I have to make an admission. I do love to eat char kueh teow and nasi kandar. On why the SST was imposed in a way that aggravated the people, I have to say I thought the list was all luxury items when I first saw it.

“Do you know what Norway lobsters and rock lobsters are? So when I saw this, I thought everything was mewah (luxurious), so just hentam (slap on) SST. 

Lim said food items such as abalone may be subject to a review later. 

“For the time being, we’re taking it out (from being taxed) to not create confusion. We will proceed with the rest when we want to impose SST on luxury items.

“All those who are worried about char kueh teow and nasi kandar, don’t worry,” he said.   

Meanwhile, Customs deputy director Paddy Abdul Halim said the SST excludes salted fish from the taxable list, saying it had “slipped the eyes” of the department. He apologised for the mistake. – September 3, 2018.