Proposed consumption tax overhaul heads to AL

The Executive Council (ExCo) has approved a draft amendment to the city’s consumption tax regime. The bill is set to be submitted to the Legislative Assembly for review, officials said at Tuesday’s press conference.

The proposed changes target administrative inefficiencies in the current system, particularly for importers of certain alcoholic beverages and tobacco products.

Authorities said the reform is part of a broader push to streamline public administration and improve the business environment by reducing procedural burdens on companies.

ExCo spokesperson Wong Sio Chak said the revision follows a comprehensive review of approval and regulatory processes. Wong detailed that, under existing rules, businesses importing goods can opt for a “simultaneous voluntary payment system,” paying consumption tax upfront and later applying for refunds if conditions are met, describing the process as cumbersome and “time-consuming.”

The amendment would introduce a “payment upon customs clearance” mechanism, allowing operators to settle tax obligations more directly.

Importers would be required to open accounts with designated banks and deposit the relevant tax amount in advance.

Then, upon customs clearance, authorities would verify payment before releasing goods into the local market.

Director of Economic and Technological Development (DSEDT) Yau Yun Wah said the changes aim to align with the government’s broader reform agenda of delegating authority and improving services.

The DSEDT official added that the proposal incorporates feedback from industry stakeholders, who have long called for simplified tax procedures.

If approved by lawmakers, the revised framework would update provisions under Law No. 4/99/M.