The Free Zones (Amendment) Bill 2022 was enacted by the Dewan Rakyat to amend the Free Zones Act 1990.
The bill, which included two provisions, is aimed at changing the Free Zones Act 1990 (Act 438) to provide assistance to the sector if there is a need to adjust the terms and conditions based on the taxpayers’ needs while without imposing any consequences on the government.
The Free Zones (Amendment) Bill 2022, introduced by Deputy Finance Minister II Yamani Hafez Musa, was passed after nine Members of Parliament debated it.
Yamani Hafez stated that the revisions were made to incorporate two new articles to offer industry and business with relaxation and duties during a specific period in the event of public emergencies or health crises.
“For example, those who are dissatisfied with the decision of the free zones to provide authorization under the Free Zones 1990 rules may file an appeal within 30 days of receiving permission from the zone authority.”
“With the additional provision on time extension, the Finance Minister can extend the term to the party in need in the case of a public emergency or public health catastrophe in the future,” he said.
The Dewan Rakyat also passed the Tourism Tax 2017 (Amendment) Bill 2022 which among others is aimed at giving the Finance Minister power to determine details in invoices or receipts under this act.
During the winding-up debate on the bill, Yamani Hafez said the amendment to Act 791 under the Tourism Tax 2017 (Amendment) Bill 2022 will allow the submission period for tourism tax statement to be extended for a specified period.
“Act 791 has set that payment must be made within 30 days after the taxable period. Nevertheless, if there is a health crisis such as pandemic and the industry is unable to make payment during the period they are allowed to, they will be charged a penalty.
With the new provision, in the event of an emergency or health crisis in the future, the minister can extend the said period through official announcement or directive to the director-general,” he said, adding this will give room to the industry to review and make payment without having to pay the penalty even though the period given to them has ended.
