Petronas given till Sept to pay sales tax on Sarawak O&G

Asfia (centre) at the press conference.

By Lian Cheng

KUCHING, Sept 13: The state government has set the end of September as the deadline for Petronas to pay up the five per cent sales tax on oil and gas produced in Sarawak.

The Sarawak Consultative Committee on the Malaysia Agreement 1963 was confident that Petronas would pay up the estimated RM3 billion sales tax, which Sarawak is demanding under the Oil Mining Ordinance 1958.

“That (payment for the sales tax imposed on Petronas) will be made because we have the leverage, because the Constitution is on our side,” committee chairman Datuk Amar Mohd Asfia Awang Nassar told a press conference after a meeting at the State Legislative Assembly complex (DUN), here, today.

Chief Minister Datuk Patinggi Abang Johari Tun Openg attended the meeting.

Sarawak imposed the sales tax on export of petroleum and petroleum products this year.

“We are confident they will pay the five per cent of RM3 billion or more. The details cannot be disclose at the moment, it will be premature to disclose the details that may have a bearing on the strength of our position,” said Asfia when questioned by the media on details of the negotiation.

Asfia added that the main agenda on the table between Sarawak and the federal government on MA63 has centred around oil and gas.

“This is what we are discussing, principally on oil and gas, and nothing else.” 

“The rest are ancillary. The main one is oil and gas,” he said when probed further.

Asfia pointed out that there is a clear deadline set for the negotiation between Sarawak and the federal government on returning of rights to Sarawak based on MA63.

“(The deadline for) the entire negotiations including the sales tax is end of October,” he said. — DayakDaily