KOTA KINABALU: Sabah Progressive Party (SAPP) calls on the Federal Ministry of Finance to permanently abolish the imposition of stamp duty and related penalties on employment contracts.
This policy, which had never been enforced in practice, was suddenly implemented without any prior formal notice. This has caused unnecessary confusion and hardship for employers, said Chin Vui Kai, the Information Chief of Sabah Progressive Party (SAPP) in a statement.
“Many businesses, including SMEs and even family-run operations, can be fined for failing to stamp employment contracts within 30 days, despite the fact that this requirement had never been previously enforced.”
“While the Employment Act 1955 requires a written contract for employment exceeding one month, it does not require the contract to be stamped in order to be valid,” he said.
“Therefore, the stamp duty requirement on employment contracts is not only outdated and impractical, but it also places an unnecessary burden on both employers and employees.”
Employers should not be subjected to retroactive penalties for a rule that was never clearly announced or previously enforced. At a time when the business environment is increasingly challenging, the government should reduce bureaucratic red tape, not add to it, and help construct a stable and business-friendly operating climate.
“We are not asking for a temporary waiver or leniency during the election season. We are firmly demanding the immediate and permanent abolition of this policy.”-pr/BNN
