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MBAM proposes reduction of import duty and sales tax for heavy machinery

KUALA LUMPUR: The Master Builders Association Malaysia (MBAM) has suggested that the government reduce the import duty and sales tax for heavy machinery used in construction, on a systematic basis within two years, to five per cent from the 20 per cent currently.

In a statement on Friday April 8, the MBAM said the reduction would enable construction machinery companies as well as the industry, to remain competitive within ASEAN.

It said as a majority of the construction machinery in Malaysia is quite old, there would be huge opportunities for construction machinery companies to explore, penetrate and expand their businesses, to support the implementation of projects in the country.

"The MBAM is encouraging the use of newer machinery to improve efficiency and also for safety purposes, as older ones, may have a higher safety risk due to metal fatigue," it added.

However, the MBAM said the existence of an import duty and sales tax are still required to avoid large scale dumping of second hand machinery in Malaysia. --Bernama

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