Why are modems excluded from the budget reduction for computer products?


by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjong, Lim Kit Siang, in Petaling Jaya on Saturday, November 4, 1995:

Why are modems excluded from the budget reduction for computer products?

Although computer companies taking part in the Infotech Malaysia (IFX) 95 exhibition in Kuala Lumpur are selling their equipment at post-budget prices as announced by the Finance Minister, Datuk Seri Anwar Ibrahim, I have found during my visit to the ITX 95 Exhibition that modems are excluded from the budget reduction.

The customs department has classified modems as ‘data communication” and not computer equipment.

This is most illogical and detracts from the 1996 budget as an IT budget to promote the maximum number of Malaysians to get on to the information superhighway.

A modem is one of the three essential items – the others being a computer and a telephone line – for everyone to get onto the Internet.

Anwar Ibrahim should look into this omission and ensure that the abolition of sales tax for computer equipments also covers modems.