KUALA LUMPUR: The Dewan Rakyat has approved five amendment bills to implement special tax provisions for Pulau 1, also known as Forest City.
Deputy Finance Minister Lim Hui Ying tabled the Customs (Amendment) Bill 2024, Excise (Amendment) Bill 2024, Free Zones (Amendment) Bill, Sales Tax (Amendment) Bill 2024, and Service Tax (Amendment) Bill 2024 for the second and third reading in the Dewan Rakyat.
The five bills were approved without amendment via voice vote.
The Customs (Amendment) Bill 2024 is aimed at promoting Pulau 1 and enhancing the economic growth within the area by introducing special tax provisions dealing with the area into act.
The bill also seeks to provide that Pulau 1 will no longer be part of the principal customs area similar to Labuan, Langkawi, Tioman and Pangkor.
The Excise (Amendment) Bill 2024, seeks to exclude Pulau 1 from the principal customs area and provide special provisions dealing with Pulau 1, in line with the amendment to the Customs Act 1967.
The Free Zones (Amendment) Bill, is composed of two clauses. In Clause 2, it seeks to amend subsection 2(1) of the act.
In Paragraph 2(a), it seeks to exclude Pulau 1 from the definition of "principal customs area", while Paragraph 2(b) seeks to introduce a new definition of "Pulau 1" into the act.
Meanwhile, Pasir Gudang Member of Parliament Hassan Abdul Karim when debating the bill has called on the National Land Council, the federal government and the Johor state government to address the issue of freehold status for properties in Forest City, particularly those purchased by foreigners.
"Currently, the properties in Forest City are granted the freehold status including for foreign purchasers, granting indefinite ownership.
"In contrast, Malaysians purchase properties that are leasehold, which expire after a maximum of 90 years. This is unfair.
"Therefore, I urge the National Land Council and the federal government to engage in discussions with the Johor state government on this matter.
"It is crucial for our nation that we should be granted the leasehold status, instead of freehold. Give the leasehold status for properties purchased by foreigners, a maximum of 90 years.
"This issue is related to our national security and is very sensitive. We just approved the Malaysia Border Control and Protection Agency Bill 2024. Let's address these concerns comprehensively," he said.
Lim during her winding-up speech said the matter, however, was not under the purview jurisdiction of the Finance Ministry.
"Nevertheless, we will convey this perspective to the relevant parties, particularly the Johor state government."