
Lim was commenting on a suggestion by a think tank yesterday for Putrajaya to impose a ban in the duty-free islands of Langkawi, Labuan and Tioman.
The Bagan MP said he had to first get word from the health ministry before a decision could be made, but expressed personal pessimism that it would solve the problem.
“For this recommendation… we will wait for feedback from all parties first,” Lim told reporters when met at the Parliament lobby today.
The Institute for Democracy and Economic Affairs (IDEAS) said the previous government had admitted that the tax-free islands were a source for illicit tobacco.
But it said previous proposals to ban the sale of duty-free tobacco had been passed over in favour of restrictions. It recommended the government impose a ban of its sale.
It urged Putrajaya not to increase excise duties on tobacco, saying multiple tax hikes on cigarettes had also led to a drastic increase in the legal price of cigarettes.
This, in turn, caused a rise in the illicit tobacco trade.
It suggested the government review the existing tax regime in light of the experience of other countries which had successfully reduced the illicit cigarette trade.
Meanwhile, Kedah Menteri Besar Mukhriz Mahathir told reporters when met here the state government would need to look at IDEAS’ report and discuss it before making a decision.
However, he said the issue required federal intervention more so than state, as tax from cigarette sales was collected by the Customs Department, not the state.
“We do not receive the revenue from these taxes,” he explained.
Meanwhile, Lim, talking about former prime minister Najib Razak’s contention that Malaysia would not get back RM10 billion from the cancellation of the East Coast Rail Link project, said he stuck to comments he had earlier made in Parliament and did not want to comment for now.
“Why don’t we wait for the charges, the events in court to be publicised first so at least we know where we stand?” he said referring to fresh charges levelled against Najib today.
Lim added: “Najib has made a lot of comments, but when we mention one of these cases, he only mentions those that are not controversial. For example, he doesn’t mention the pipeline project.”
Lim was referring to two gas pipeline projects approved by the cabinet in 2016, referred to as the “RM9.4 billion scandal”. It was reported that RM8.3 billion was paid but only 13% of work was done.
The matter is believed to be linked to 1MDB.
The Multi-Product Pipeline is a 600km multi-product petroleum pipeline connecting Melaka and Port Dickson to Jitra, Kedah. It was to have cost a total of about RM5.35 billion.
The Trans-Sabah Gas Pipeline (TSGP), meanwhile, involved the construction of a 662km gas pipeline from Kimanis Gas Terminal to Sandakan and Tawau. It was to have cost about RM4.06 billion in total.
Both projects were awarded to China Petroleum Pipeline Bureau (CPPB) on Nov 1, 2016. The agreements were signed by then Treasury secretary-general Irwan Serigar Abdullah.
Najib and Irwan earlier today claimed trial at the Sessions Court to six charges of criminal breach of trust involving RM6.6 billion worth of government funds. One of the charges is linked to the pipeline projects.