KUALA LUMPUR, Aug 21 — Tebrau MP Jimmy Puah Wee Tse will raise in Parliament concerns over uncertainty surrounding taxation on commingled oil cargo stored in shore tanks at Tanjung Langsat Port, Johor.
He said the matter required clarification from the Royal Malaysian Customs Department (RMCD) to ensure industry players had clarity and certainty regarding their tax obligations.
“Any ambiguity in relation to taxation in this matter is most certainly a concern. As such, I hope and urge the Royal Customs to provide greater clarity on this matter to industry players.
“Clarity and certainty are important considerations for businesses, especially as we seek to grow the petroleum logistics and maritime sectors,” he said in a statement today.
Puah said he would raise the matter in Parliament to seek clarification on the tax treatment of commingled oil cargo operations.
As a member of the Parliamentary Special Select Committee on Economy and Finance, he said he would also urge the committee to call relevant parties to provide clarification and discuss a resolution to the issue.
“I will also urge the committee to call the relevant parties to provide clarification and seek a resolution to this matter,” he said.
Puah said clear clarification from the authorities was important to ensure industry players could operate in accordance with established regulations while providing certainty to investors in the petroleum logistics and maritime sectors.
On July 15, the Malaysian Anti-Corruption Commission (MACC) and RMCD proposed establishing a special task force to monitor enforcement activities and tax collection at the country’s strategic ports.
However, the authorities have yet to disclose the outcome of the proposed special task force.
Recently, maritime industry observer Datuk Seri Jeyenderan Ramasamy urged MACC to provide a substantive written response regarding a report lodged in June over alleged commingling or blending of petroleum cargo.
The Maritime Network Sdn Bhd chief executive officer said about two months had passed since the report was lodged on June 5, but no official written response had been received confirming its status or which authority was responsible for the matter.
On Aug 14, the White House Office of Trade and Manufacturing Policy identified Malaysia among more than 40 countries at risk of facilitating tariff evasion through China-linked transshipment networks.
In its report, titled The Great Transshipment Scam: Rise, Scope, and Costs, the United States placed Malaysia in Tier 2 alongside Brazil, Indonesia, Thailand, Türkiye and Vietnam, stating that the country’s deep-sea ports, manufacturing hubs and free trade zones could potentially serve as channels for diverting goods from China to evade US tariffs.
The report said Malaysia serves as a manufacturing and logistics hub, while highlighting the Penang-Kulim industrial corridor and Port Klang Free Zone.