Petronas ordered to pay up, notice has been issued — Sharifah Hasidah

Sharifah Hasidah talking to the press.

By Lian Cheng

KUALA LUMPUR, Oct 19: Sarawak has given a notice to Petronas to pay up the outstanding sales tax payable to the state government based on the Oil Mining Ordinance 1958 (OMO).

“We have given them the time. I can’t remember the exact date but we have given them the letter to ask them to pay,” Assistant Minister of Law, State-Federal Relations and Project Monitoring Sharifah Hasidah Sayeed Aman Ghazali told reporters at the Lan Berambeh Anak Sarawak 2019 programme here today.

She added that the notice was sent based on the requirement of the law.

“The law requires just a notice to ask them the assessment, failing which we will impose penalty,” Sharifah Hasidah said when met after the #TanyakAbangJo Townhall session at event at Malaysia International Trade and Exhibition Centre.

The assistant minister said she was certain of the penalty but uncertain of the amount involved. Until now, the Sarawak government has yet to receive any reply from Petronas.

Meanwhile, on the new October deadline for the national oil company to pay up the sales tax on oil and gas, Sharifah Hasidah explained that it was also the same deadline for the Steering Committee of the Malaysia Agreement 1963.

“Actually, we would like to wait until the end of Steering Committee to end October. So, we might as well wait for everything at the end of this month,” she continued.

Abang Johari talking to reporters after the townhall session.

On the sales tax payment, Chief Minister Datuk Patinggi Abang Johari Tun Openg said he would let the law take its course.

“There is negotiation. I have passed it to our accountant general, the tax collector to deal with Petronas but the law is very clear,” he said, while adding that Sarawak will not give up on claiming sales tax.

“For me, I am only implementing what is stated in our (Federal) Constitution and also the state laws, OMO, and also laws with regards to sales tax.”

He reiterated that Sarawak’s action to impose sales tax on petroleum and petroleum products is based on the law and anyone who refuses to follow the rules is breaching the law.

When asked on the 20 per cent oil royalty to be given to Sarawak, Abang Johari said it was a Pakatan Harapan promise.

“Pakatan promised it but whether they are going to implement, it depends on them. However, if they don’t implement it, it means Pakatan has misled Malaysians,” said Abang Johari. — DayakDaily