IMPORT DUTY ABOLITION ON TOURISTS' COLLECTOR'S ITEMS WILL NOT DERAIL TAX COLLECTION TARGET

PUTRAJAYA, Oct 20 (Bernama) -- The Customs Department says scrapping of import
duty for tourists and locals collector's items will not derail the department's
target to collect RM28 billion in tax this year. (US$1=RM3.10)

Instead, the department was confident of collecting the targeted amount, said
Director-General Mohamed Khalid Yusuf.

He said the confidence was based on the RM22.410 billion collected between
January and Monday (Oct 18).

"It's not something impossible to achieve the target. Probably, the Customs
Department will create history this year by collecting the highest amount of
tax," he told reporters here Wednesday.

Tabling the 2011 Budget in Parliament last Friday, Prime Minister Najib Razak
said the government proposed to abolish import duties between five and 30 per
cent on some 300 collector's items of foreign and domestic tourists.

The decision was to turn Malaysia into a shopping paradise in Asia by offering
branded goods at competitive price. Among the items are handbags, shoes,
wallets, imitation jewellery, perfumes and golf balls.

On proceeds from enforcement operations, Mohamed Khalid said that between
January and Monday (Oct 18), goods worth RM346 million were seized, with the
highest confiscations made in Selangor and the Kuala Lumpur Federal Territory.

During the period, the highest contraband seized was cigarettes worth RM67.2
million, followed by drugs valued at RM38 million, vehicles (RM27 million),
electrical goods (RM13 million), communication equipment (RM12 million) and
firecrackers and fireworks (RM10 million), he said.

Contraband worth RM338 million was seized last year, while goods valued at RM169
million were confiscated in 2008, he said.

The cumulative value of seized goods from January to this month had clearly
surpassed that of last two years, he said, adding that the customs would
continue to step up raids on suspected premises. (US$1=RM3.10)
-- BERNAMA