Chong wonders if state govt factored in impact of 5 pct sales tax on petroleum products

Chong (seated centre) speaking to reporters at the DUN media centre.

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By Geryl Ogilvy

KUCHING, Nov 7: Sarawak Pakatan Harapan chairman Chong Chieng Jen has asked the state government to review the impact of the 5 per cent sales tax on petroleum products on the people before it is officially imposed next year.

The Kota Sentosa assemblyman said the additional sales tax, levied on crude oil, natural gas, liquefied natural gas, chemical-based fertilisers and gas-to-liquid products, could create a chain effect that could lead to an increase in prices of other goods.

“Will we be made to pay this additional sales tax on crude oil and other petroleum products? Lubricating oil, liquefied natural gas as well as chemicals for the manufacturing of fertilisers will be more expensive when the 5 per cent tax is imposed.

“This could impact industry players in agriculture and transportation sectors … affecting consumers. Has the government carried out studies on the impact on the sales tax implementation?” Chong told a press conference on the sidelines of the State Legislative Assembly (DUN) sitting here today.

The DAP lawmaker questioned whether the sales tax on petroleum products would have the same effect as the 10 per cent sales tax imposed on lottery tickets, which goes to the state’s coffer.

Chief Minister Datuk Patinggi Abang Johari Tun Openg, when tabling State Budget 2019 on Monday (Nov 5), said the petroleum sales tax that would take effect on Jan 1, 2019, would generate an estimated revenue of RM3.897 billion.

Sarawak is allowed to impose this tax under Schedule 10 of the Federal Constitution, and it is currently imposed on crude palm oil, crude palm kernel oil, lottery tickets and tyres. — DayakDaily