The Sarawak and Sabah Shipowners Association (SSSA) wants the government to provide exemption to owners for four categories of ships in the two states as stated under Section 54A of the Income Tax Act 1967.

The president, Yong Ing Hui said the ships that did not enjoy tax exemption under the Act were tug boats and barges, supply ships, crew boats and ferries.

He added that these category of ships were among the 9,000 registered and owned by businesses in Sarawak and Sabah under the Merchant Ship Ordinance 1952.

"Although registered under the ordinance and the same as other category of ships that enjoy the tax exemption, these ships to date have not been accorded the same privilege," he added.

Yong said this when speaking at the ceremony to elect the 30th SSA executive committee for 2015 - 2016 here today.

He said in Singapore and Indonesia tax exemption was given to all category of ships, irrespective of size, type or sailing limitations.

"We urge the Transport Ministry to help explain to the Finance Ministry or make specific amendments in line with the definition of ships in Malaysia," he added.

In the Budget 2012, it was proposed that 30 per cent of shipping profits be taxed, but the Finance Ministry gave its approval for abolishing this need until end 2015.

The SSSA hopes the government would give a 100 per cent tax exemption and include tug boats and barges, supply ships, crew boats and ferries.

Yong expressed confidence that such a move would help stabilise transport costs and at the same time, benefit both users and the ship owners.