No reduction, no deduction: Sarawak seeks RM2.878 bln in SST from Petronas

State Consultative Committee chairman Datuk Amar Mohd Asfia Awang Nassar.

By Peter Sibon

KUCHING, June 10: The Sarawak Government is seeking RM2.878 billion in State Sales Tax (SST) from Petronas, revealed State Consultative Committee chairman Datuk Amar Mohd Asfia Awang Nassar.

He said the quantum was based on SST from Petronas alone for 2019 as other oil companies have paid their dues.

“We want the SST of RM2.878 billion and not RM2 billion, that we go for without reduction or deduction,” Mohd Asfia told a press conference after chairing the State Consultative Committee at State Legislative Assembly Complex (DUN) here today.

Mohd Asfia, who is also DUN speaker, was clarifying a joint press statement issued by Assistant Minister of Law, State-Federal Relations and Project Monitoring Datuk Sharifah Hasidah Sayeed Aman Ghazali and Petronas chairman Datuk Ahmad Nizam Salleh on May 8 that the said press statement was not a final agreement between Sarawak and Petronas.


“The joint press statement made by Datuk Sharifah Hasidah and Petronas chairman Datuk Ahmad Nizam Salleh (on May 8, 2020) is not a final agreement that has a binding effect on Sarawak because it was based on an ongoing negotiation.

“Then this committee came up with three provisions, namely: it should be based on the Petroleum Development Act 1974 (PDA 74); Continental Shelf 1963 and the Territorial Sea Act 2012 which are strictly compartmentalised based on two-track negotiations at the federal government level and ours,” he explained.

On the joint statement, Sharifah Hasidah clarified that it was to highlight the willingness of Petronas to pay the SST, itself a recognition to state laws governing the oil and gas in Sarawak territories especially the Oil Mining Ordinance 1958 (OMO) 1958, Inter-Governmental Committee (IGC)1963 and Malaysia Agreement 1963 (MA63). —DayakDaily.