Tax will hit Labuan’s duty free status, say traders

KOTA KINABALU: Labuan businesses are appealing to the government to put on hold plans to impose duties on tobacco products as it will further strangle the economy of the duty free island.

Stakeholders in the Federal Territory said that businesses have already been struggling for years now and the duty free status was the only draw left for tourists to come to the island, an international offshore financial centre.