LME may stop issuing warrants in Malaysia in July as new tax comes into effect

The London Metal Exchange may halt the issuance of warrants in warehouses on Johor and Port Klang from July unless it receives confirmation that the trade in metal warranted in those locations will be exempt from a new goods and services tax (GST).

The new tax is due to come into effect on April 1, and the LME has for “a number of months” been seeking clarification on whether and how the tax will apply to warranted metal in LME-registered bonded warehouses in Johor and Port Klang, the exchange told members on Monday March 16. So far, it has not been able to achieve clarity on a number of issues, including whether tax will apply to the sale, purchase and warranting of metal stored in the ports,...

Published

March 16, 2015

20:37 GMT

London