KUALA LUMPUR: Any consideration to waive the sales and service tax (SST) on agricultural products from countries other than the United States will depend on negotiations and reciprocal offers that bring clear benefits to Malaysian companies, says Tengku Datuk Seri Zafrul Abdul Aziz.
The Investment, Trade and Industry Minister said the SST exemption on agricultural products imported from the United States was one of the outcomes that reduced retaliatory tariffs imposed on Malaysia from 25% to 19%.
"Whether sales tax exemption will be granted to imports from other countries, the ministry would like to clarify that the exemption granted to the United States is the result of concluded negotiation based on mutual interests.
"Any tax exemption consideration to other countries will depend on negotiations, demand and offers by the related country, with conditions that it is beneficial and profitable for Malaysia," he said when giving his winding up speech on the 13th Malaysian Plan (13MP) in Parliament on Tuesday (Aug 19).
"What was promised to the United States must also ensure that our trading partners receive the same and fair treatment," added Tengku Zafrul.
Datuk Dr Radzi Jidin (PN-Putrajaya) had earlier said that under World Trade Organisation (WTO) rules, imported goods should be treated fairly.
He said many other countries are facing the same issue as Malaysia, where they are setting aside the principles of multilateralism under the WTO in order to protect their own economic and political interests.
"This was due to the United States' moves, which are seen to be aimed at creating a new global trading order based on the current geopolitical and economic situation," he said.
"We must uphold fair, just and non-discriminatory international trade principles, including our neighbours that we have free trade agreements with," said Tengku Zafrul.
He said his ministry will conduct a more detailed study and consultation with relevant ministries.
Meanwhile, Tengku Zafrul said that in discussions with the United States in relation to the SST, the ministries involved, especially the Finance Ministry, understood that under WTO principles, what is granted to one member must also be granted to others.
"This includes issues raised by the United States, such as why certain non-tariff barriers are applied differently to them compared to other countries.
"It slightly differs here because the United States is not in any free trade agreement with us. But any commitments made with the United States must be extended fairly with other trading partners of ours," he added.
