KOTA KINABALU: Sabah will consider imposing a sales tax on purchases of gold jewellery, said state Finance Minister Datuk Seri Masidi Manjun.

"We do not stop from finding ways to improve and find ways to get revenue from gold to be returned to the government through taxes.

"We are considering a sales tax in the near future. We will improve the process to ensure there are no ways for any operator to evade payment to the state government," he said in reply to a supplementary question by Datuk Seri Mohd Shafie Apdal (Warisan- Senallang) at the state assembly sitting.

Shafie had asked whether the state government would consider downstream gold ventures as in other countries like the United Arab Emirates that make jewellery out of the element.

To his question on the federal government approving gold mining operations at a disputed land, Masidi said Sabah had its ordinances on land and mining. He said the relevant authority from Sabah would look into the issue.

Earlier, Shafie had also asked about the measures taken to ensure that Sabah does not suffer losses following the seizure of 110 kg of gold bars at Tawau airport last January.

Datuk Seri Yong Teck Lee (SAPP) questioned whether sales and export taxes were imposed on those who took gold items out from Sabah.

Assistant Finance Minister Datuk Julita Majungki said Sabah was a fortunate state with a high potential for developing the gold industry based on exploration work and mining lease production assessment.

"For the time being, gold mining operations are only conducted at Bukit Mantri, Tawau, covering an area of 317.7 hectares under Mining Lease CL.105681141.

"Since commencing operations in 2018, a total of 2,300kg of gold bars have been sold, amounting to RM585 million, with the state government receiving a five per cent royalty on the sale of raw gold, totalling RM23,967,315.79.

"For your information, the state government has not imposed any sales tax, and the Customs Department has also not imposed export duties on gold exported from Sabah to Peninsular Malaysia because it is considered domestic sales only at this point."

Julita said to ensure optimal revenue collection, the state government had collaborated with the Land Revenue Office, the Land and Survey Department, Sabah Mineral Management Sdn Bhd, the Department of Minerals and Geosciences and the Customs Department, to ensure gold mining and smelting processes were more transparent and effective.

"The gold industry is still relatively new and the state government is always concerned and attentive to emerging issues, especially those related to revenue generation for the state.

"The government will continuously improve the mineral mining processes, not only for gold but also tighten existing regulations to ensure that the state government can collect maximum revenue."

https://www.nst.com.my/news/nation/2024/04/1041535/sabah-govt-mulls-sales-tax-gold-purchases