SSMRA Demands Further Cut in Sales Tax on Scrap Metal Exports

SEATTLE (Scrap Monster): The Sabah Scrap Metal Recycling Association (SSMRA) has urged the government to further lower sales tax on scrap metal exports out of the state. It must be noted that the state of Sabah had recently revised downwards the sales tax on scrap metal exports to 10%.

SSMRA stated that the association is grateful to Industrial Development and Entrepreneurship Minister Phoong Jin Zhe for reviewing the sales tax of RM200 per metric ton on scrap iron export. However, the new lower tax formula is also likely to burden them. The new 10% scrap iron export tax will continue to be a big burden to all scrap iron dealers, it noted.

ALSO READ: Trade Ministry to Hire 8 Scrap Metal Inspectors

The Association noted that the association’s members play a significant role by reducing waste to landfills. It also creates immense job opportunities and contribute to the state’s economy.

SSMRA urged the state government to be sensitive to all sectors involved while making critical decisions. The revised tax system would make scrap iron sold in the state to be the cheapest in the country and the price to steel produced in Sabah to be higher than other states. It hoped that the cabinet would consider lowering the scrap iron export sales tax to 5%, which in turn will reduce the burden on scrap metal recycling industry.