Friday, 27 February 2015

Langkawi to be GST-exempt

In line with it's status as a Tax-free Haven, Langkawi has been exempted from Malaysia GST come April 1..

This is wonderfully good news because it can spur local tourism, and the last time I was in Langkawi was in 2002.. A visit is thus due..

This includes all of the goods and services consumed entirely in Langkawi and Langkawi island proper only.. In short, nobody in Langkawi can charge GST, and holiday-makers and tourist to Langkawi must be aware of the GST-exempted status and report if they are charged GST..

However, transport services into Langkawi (such as ferry from Penang, Kedah or Perlis) or flights into the island, are still subjected to GST at the rate of 6%.. If Langkawi is part of a tour that also includes other cities/towns/areas, only the Langkawi portion consumption is GST-exempt, all other areas are still GST-taxable..

If we were to buy things from Langkawi, say back to Kuala Lumpur, there should not be GST because the existing law applies, as Langkawi is a duty-free island, things bought in Langkawi are to be duty-free, anyway..

The GST-exempt status also applies to Labuan and Tioman.

Note: The above is based on preliminary unofficial answers from Royal Malaysian Customs - GST Division, and is at no point to be taken as official unless otherwise an official announcement is issued by the Customs Dept. 

How is this news to you? Would it make you want to visit Langkawi more, when other resorts and places in the country begins charging you GST?

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