KUCHING: The Finance Ministry has affirmed that the six per cent GST is applicable to domestic flights in Sabah and Sarawak and that the government has no plan to exempt GST for domestic flights.
The government has, after all, given subsidy to MASWings to enable it to offer reasonably lower fares to the people of Sabah and Sarawak.
Senator Prof Dr Sim Kui Hian, however, said the rural places in the two states were in dire need of flight because many of them were difficult to access by other modes of transportation.
“It is not a luxury flight so the six per cent GST should be exempted. We are already faced with the rising cost of living here,” he told reporters at SUPP headquarters here yesterday.
Dr Sim said he was unhappy with the reply he received during a Senate sitting in Kuala Lumpur recently when he raised the issue to the finance minister.
He vowed to bring up the matter again in the next sitting. -Borneo Post.
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