KUALA LUMPUR: The Finance Ministry has tabled five amendment bills to implement special tax provisions for Pulau 1, Forest City, similar to other duty-free islands.

Deputy Finance Minister II 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 first reading in the Dewan Rakyat on Tuesday (July 16).

"It aims to promote Pulau 1, Forest City, situated in the Mukim of Tanjung Kupang, District of Johor Baru, Johor, as well as to enhance economic growth within the area by introducing special tax provisions dealing with the area into Act 235," the Customs (Amendment) Bill 2024 read.

With the amendment, Pulau 1 will no longer be part of the principal customs area, similar to Labuan, Langkawi, Tioman, and Pangkor.

Consequently, amendments will also be made to the Excise Act 1976 [Act 176], Free Zones Act 1990 [Act 438], Sales Tax Act 2018 [Act 806], and Service Tax Act 2018 [Act 807].

The amendment to section 2 of the Free Zones (Amendment) Bill will also mean that Pulau 1 will be listed as a free zone, along with Labuan, Langkawi, Tioman, and Pangkor.

The bills are scheduled for the second reading in the current Dewan Rakyat meeting.

In August last year, Prime Minister Datuk Seri Anwar Ibrahim said the government had designated the multi-billion ringgit Forest City project as a special financial zone to spur the economy in Iskandar Malaysia.

He said among the incentives were allowing for multiple entry visas, fast-track entry for those working from Singapore, and a flat income tax rate of 15% for knowledge workers.

https://www.thestar.com.my/news/nation/2024/07/16/finance-ministry-tables-amendment-bills-for-pulau-1