KUALA LUMPUR, July 28 — The Federation of Malaysian Manufacturers (FMM) is urging the government to grant exemptions on import duty and sales tax on all inputs in the manufacturing of face mask to ensure that local producers are able to compete with importers.
Currently, face mask importers have been exempted from paying import duty and sales tax.
FMM president Tan Sri Soh Thian Lai said currently, local producers are paying 20 per cent import duty and 10 per cent sales tax on materials which include the PP non-woven fabric used to manufacture the three ply mask, as well as the metal nose wire and elastic earloop.
He said local face mask manufacturers are facing stiff competition from importers of the product, especially those who are importing from China, due to the high cost of raw materials.
“The import duty and sales tax exemption is to further support local manufacturers as well as part of the initiative to buy made-in-Malaysia products.
“Currently the raw materials are mainly imported from China, India, Ireland and United Arab Emirates due to insufficient local supply,” he told Bernama.
Meanwhile, FMM welcomes the government’s move to reduce the ceiling price of face masks from the current RM1.50 per piece to RM1.20 per piece, effective Aug 15.
“Given that the government is making it compulsory to wear face masks in public areas from Aug 1, 2020, the government should bring forward the new ceiling price’s effective date to Aug 1 as well,” he said.
On July 23, Domestic Trade and Consumer Affairs Minister Datuk Alexander Nanta Linggi announced the cut in the ceiling price for face masks, as well as the reduction in its wholesale price, from the current RM1.45 per piece to RM1.15 per piece.
Nanta said the price reduction was in line with the government’s move to make it compulsory to wear face masks in public areas.