KUALA LUMPUR: Five bills have been passed by the Dewan Rakyat to turn Pulau Satu in Forest City, Johor, into a duty-free island.
The Customs (Amendment) Bill 2024, Excise (Amendment) Bill 2024, Free Zones (Amendment) Bill 2024, Sales Tax (Amendment) Bill 2024, and Service Tax (Amendment) Bill 2024 were brought by Deputy Finance Minister Lim Hui Ying for third reading at the Dewan Rakyat on Wednesday (July 17.
It was passed with a voice vote.
Several MPs participated in the debate of the Bill, which seeks to promote Pulau Satu, Forest City, and to enhance economic growth within the area by introducing special tax provisions.
During winding up debates, Lim said the Mapping and Survey Department gazetted Pulau 1, Forest City as a causeway island because it is connected by a 600-metre bridge and that gazette meets the definition of an island.
The five bills were tabled for first reading on Tuesday (July 16).
With the amendment, Pulau Satu will no longer be part of the principal customs area.
The amendment to Section 2 of the Free Zones (Amendment) Bill will also mean that Pulau Satu will be listed as a duty-free island, along with Labuan, Langkawi, Tioman and Pangkor.
Under the proposed new section 91AF for the Excise (Amendment) Bill, excise duties are payable to all dutiable goods manufactured or imported to Pulau Satu, other than those exempted.
Dutiable goods transported out of Pulau Satu will be subjected to excise duties.
Last year Prime Minister Datuk Seri Anwar Ibrahim had said the government had designated the multibillion ringgit Forest City project as a special financial zone to spur the economy in Iskandar Malaysia.
He said that among the incentives would be to allow for multiple entry visas, fast-track entry for those working from Singapore, and a flat income tax rate of 15% for knowledge workers.
