Quick revenue boost from lifting of Labuan tax-free status

THE lifting of Labuan’s tax-free haven status starting with alcoholic beverages, should it happen, is a quick way to boost Government coffers, although the overall impact may not be too significant.

By rough estimates, Yeah Kim Leng, economist and dean at the school of business at Malaysia University of Science and Technology says the Government could potentially reap “a couple of hundred million ringgit” a year by taxing alcohol sold in Labuan.