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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.
“The imposition of duties on tobacco is going to hit both big and small businesses. The government must not rush into it.
“Businesses in Labuan have been slowing down over the years. Imposing duties on tobacco products will hit us further as many are already suffering from the effects of the Covid-19 pandemic, ” said Labuan Chinese Chamber of Commerce chairman Datuk Wong Kii Yii who wants the government to rethink its decision.