“GPS govt, Abang Jo deserve plaudits for getting Petronas to pay SST”

Datuk Seri Doris Brodie

By Lian Cheng

KUCHING, Aug 6: The Sarawak government under Chief Minister Datuk Patinggi Abang Johari Tun Open and the Malaysia Agreement Consultative Committee deserve kudos as they were responsible for getting back the five per cent State Sales Tax (SST) on petroleum products owed to Sarawak.

This is the view of political secretary to the Chief Minister Datuk Seri Doris Brodie who stressed that the outcome was long overdue and it has been the persistence of the Sarawak government which made it happen.

“This case (sic) is long overdue. I must say ‘kudos’ to the Sarawak government under YAB Chief Minister Abang Johari for its persistency in getting Petronas (Petroliam Nasional Berhad) to pay the sales tax due to us.

“Special mention also to the Sarawak State Assembly Consultative Committee on Malaysia Agreement 1963 and the negotiating team for their endeavour.


“For Petronas to identify seven of its subsidiaries to make payments of SST to the Sarawak government and agreeing for the subsidiaries to be registered as taxable persons under the SST Ordinance 1998 reflects that they now acknowledge the state’s constitutional right to impose SST on petroleum products,” said Doris.

Sarawak imposed a five per cent sales tax on all petroleum products in the state in January 2019 on their share of oil revenue under the State Sales Ordinance 1998.

All petroleum companies operating in Sarawak paid up except Petroliam Nasional Berhad (Petronas), prompting Sarawak to file a RM1.3 billion civil suit.

Petronas then filed a judicial review application against the State Comptroller challenging Sarawak’s right to impose the said tax on its petroleum related products.

On Monday (Aug 3), Petronas decided not to fight the SST and withdrew its appeal at the Court of Appeal in Putrajaya against the Kuching High Court ruling that Sarawak is entitled to collect sales tax on petroleum products.

Today, a Consent Order which was signed all parties was submitted to the Kuching High Court to withdraw all actions, thus amicably settling the issue. Petronas has agreed to pay SST and has identified seven of its subsidiaries to make the payments to the Sarawak government. — DayakDaily