Govt open to restoring Langkawi's tax-free privileges

ALOR SETAR: The federal government is prepared to consider a proposal to restore Langkawi's tax-free privileges to help boost business activity on the resort island.

Prime Minister Datuk Seri Anwar Ibrahim said the proposal followed a call by Sultan of Kedah Sultan Sallehuddin Sultan Badlishah to revitalise business activities in Langkawi.

"Datuk Setiausaha Kerajaan Negeri (Datuk Seri Norizan Khazali) mentioned earlier the matter of Langkawi's tax status. That's all right, we can consider it.

"His Royal Highness the Sultan of Kedah had said he wanted to revive business activities in Langkawi.

"I agree, I will consider it," he said when officiating the Skim Usahawan Bangkit Negeri Kedah at Dewan Kompleks Persekutuan Muadzam Shah here today.

Earlier, media reports quoted Sultan Sallehuddin as calling on the federal government to restore Langkawi's status as a duty-free island with the privileges it previously enjoyed.

The Sultan was quoted as saying that Langkawi's duty-free status remained, but some of the privileges previously enjoyed had been reduced.

Among the matters raised were the imposition of tax on certain vehicles, as well as taxes on tobacco products and other goods.