RM585 million in Sabah gold sales. Sales tax may be imposed; call to halt ops pending dispute
Published on: Wednesday, April 24, 2024
By: Ricardo Unto
Earlier, to Yong’s original question, Julita said Sabah has high potential for developing the gold industry based on exploration and mining lease findings.
Kota Kinabalu: The State Government will consider imposing a State Sales Tax on gold exported from Sabah, said Assistant Finance Minister Datuk Julita Majungki.
This is to enhance the efficiency of gold mining and processing in Sabah.
ADVERTISEMENT
“In addition, the State Government is looking into increasing the gold royalty rate from five per cent to 10 per cent for raw gold from mining activities,” she said during the State Legislative Assembly sitting here on Tuesday, responding to a question from Nominated Assemblyman Datuk Seri Yong Teck Lee.
Julita welcomed Yong’s proposal for the imposition of export permits for gold from Sabah.
Other export items on which SST is imposed is on petroleum and Crude Palm Oil.
“This is a good proposal because the State Government is always looking for ways to ensure that we benefit from what is taken from the State.
ADVERTISEMENT
In response to a supplementary question by Senallang Assemblyman Datuk Seri Mohd Shafie Apdal, State Finance Minister Datuk Seri Masidi Manjun hoped the Land and Surveys Department would address the ongoing land and gold mining dispute in Bukit Mantri, Tawau.
Shafie emphasised that since Sabah has jurisdiction over its land and mining laws, the State should stop gold mining activities there without Federal intervention due to the dispute.
ADVERTISEMENT
Earlier, to Yong’s original question, Julita said Sabah has high potential for developing the gold industry based on exploration and mining lease findings.
“At present, gold mining operations are only carried out in Bukit Mantri, covering 317.7 hectares under Lease CL.105681141.
“Since starting operations in 2018, a total of 2,300kg of gold bars have been sold, valued at RM585 million, and the State Government has received a five percent royalty on the sales of raw gold amounting to RM23,967,315.79,” she said.
The State Government, she added, has not imposed State Sales Tax, and the Royal Malaysian Customs Department (JKDM) also does not impose export duties on gold taken out of Sabah to Peninsular Malaysia because it is currently considered domestic sales only.
“I also want to clarify the issue of the seizure of 110kg of gold bars by auxiliary police at Tawau Airport on Feb 6, this year.
“The gold bars were only temporarily detained and handed over to JKDM for further investigation.
“JKDM confirmed there were no violations of the Customs Act and/or subsidiary legislation made under the Customs Act 1967 because gold bars are not subject to the Customs (Prohibition of Imports) Order 2023, (Prohibition of Exports) Order 2023, and (Transfer Prohibition) Order 2022. As such, the items have been returned to the carrier.”
Meanwhile, Julita said that to ensure optimal revenue collection, the State Government, in collaboration with the Land Revenue Office (SUHB), Land and Surveys Department (JTU), Sabah Mineral Management Sdn Bhd (SMM), Mineral and Geoscience Department (JMG), and JKDM, will improve the gold mining and smelting processes to be more transparent and effective.
“Firstly, the Chief Minister has appointed the Land and Surveys Department (JTU) Director as the Chief Mining Surveyor starting on Jan 1, 2023, to administer the mineral administration system in Sabah and oversee mining operations.
“Secondly, an Integrated Monitoring Committee has been established to monitor gold mining operations.
“This committee has introduced a three-key system for monitoring activities held twice a month.
“The quantity of gold bars produced during the smelting process will be confirmed by SUHB and JTU, while the quality or type of gold will be determined based on chemical analysis reports submitted by the operator before being sold to buyers.
“Thirdly, JTU, SUHB, in collaboration with SMM, will strengthen law enforcement and regulations related to mineral mining activities by strengthening the regulatory framework to introduce new regulations for more efficient mining operations and compliance with environmental, social, and governance (ESG) concepts,” she said.
Julita said that the gold industry is still relatively new, and the State Government is always concerned about and addresses arising issues, especially those related to revenue generation for the State.
“The Government will continuously improve mineral mining processes, not just for gold, while tightening existing regulations to ensure the State Government can collect maximum revenue,” she said.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
