I forgot to pay duty, says politician

Wednesday September 26, 2007

By SIRA HABIBU

ALOR STAR: “Oops, I forgot.”

This is the excuse given by one of the prominent politicians who have flouted Customs regulations by using a duty-free Nissan van on the mainland without paying duties.

“A Customs officer did remind me sometime this year to settle the duty by end of this year but I forgot. Thank you for reminding me,” said the politician when contacted yesterday.

The politician took the duty-free van from Langkawi about nine years ago. He said the van was actually used by the spouse for commercial purposes. The van needed to be overhauled several years ago and was sent to the workshop for repairs.

“However, many of the car parts were stolen and as such we had left it in the workshop for years,” she said.

The politician promised to send a letter to the Customs department soon to resolve the matter amicably.

“I will pay the duty,” he said.

Another prominent politician who was implicated said he had submitted a letter to the Customs director-general stating his intention of paying duty and keeping the duty-free Harley Davidson.

It was reported in The Star on Monday that two prominent politicians were among several VVIPs who have yet to pay duty after the vehicles were taken out of the duty-free island.

They are among the 79 people who have breached Clause 21 (1) of the Customs Duty Order (Exemption) 1988 by keeping vehicles away from the duty-free island for more than a month in a year.

Politicians among 79 who have taken vehicles out of Langkawi

Monday September 24, 2007

By SIRA HABIBU

LANGKAWI: Two prominent politicians are among several VVIPs being tracked by the Customs Department for taking luxury vehicles out of the duty-free island without paying excise duties.

They are among the 79 people who have breached Clause 21 (1) of the Customs Duty Order (Exemption) 1988 by keeping the vehicles away from the island for more than a month in a year.

Customs are seeking the help of the police and the Road Transport Department (JPJ) to help track down the vehicles including BMW, Mercedes Benz, Toyota and high-end motorcycles. The other cars include Proton and Hyundai.

Before tax, the prices of various models of Mercedes Benz range from RM62,193 to RM466,110. For BMWs, a 325i costs RM200,000 while a 318 costs RM103,000.

When the vehicles are taken out of Langkawi, import duty and excise and sales tax amounting to between 150.25% and 193.15% would be charged depending on the capacity of the car.

The amount of excise duties is based on the price list of vehicles fixed by the Finance Ministry’s valuation.

A Harley Davidson motorcycle is about 69% cheaper on the island.

Langkawi Customs chief Abdul Mutalib Embi declined to comment on VVIP involvement.

“I can confirm that we are working on a mechanism to check attempts to evade duties.

“We are in talks with JPJ to ensure road tax for vehicles bought in Langkawi can only be renewed on the island.

“We are also seeking police help to seize the vehicles if they spot them during roadblocks,” he said yesterday.

Abdul Mutalib said some of the vehicles were taken out of Langkawi 17 years ago and had yet to return.

“We keep track of all the duty-free vehicles that had been taken out. These cars can only be taken out of the island once owners pay up the duties.

“The older the car the lower the duty as its value would have depreciated,” he said.