CM: 5 pct sales tax on petroleum-based products imposed only at export point

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By Nigel Edgar

KUCHING, Dec 14: The five per cent sales tax on petroleum-based products from Sarawak will only be imposed on export items.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said there had been a lot of misunderstanding, especially among the public, that this particular sales tax would make petroleum-based products in the state more expensive.

“To clarify, we (state government) only impose the sales tax on exports, not the internal ones.

“For example, like liquified natural gas (LNG), the first layer is raw gas. Then that raw gas goes to the LNG plant here. Then the LNG plant produces LNG. The one that would be taxed is the LNG for export, not the raw gas going to the plant.

“Meaning there is no multi-layered sales tax. It is only imposed at the export point,” he told reporters after witnessing a Sales and Purchase Agreement signing between Petronas Chemicals Marketing (Labuan) Ltd and Sarawak Petchem Sdn Bhd at the State Legislative Assembly (DUN) building here today.

He said he had heard a lot of concerns among the people within the oil and gas industry. They thought even the raw gas extracted in the state would be taxed five per cent.

“Which is not the case. It is only for exports. Otherwise, people would think that internal also would be taxed. That is not the case,” he reiterated. — DayakDaily