The Malaysian Timber Council (MTC) has called for the sales tax on dressed timber and mouldings to be abolished in order to help domestic manufacturers.
It describes the 5-10% tax as a disincentive for companies supplying the construction industry and furniture manufacturers, especially as imports from countries such as Indonesia are cheaper.
MTC has also asked the government to remove the 20% import duty on core veneer in order to reduce the costs of importation and improve the competitive position of plywood.
