Petronas to finally pay SST on Sept 17

Image by C Morrison from Pixabay

KUCHING, Sept 11: The good news has come that Petronas will finally pay Sarawak the outstanding State Sales Tax (SST) for 2019 amounting to more than RM2 billion.

A source who has a close link to the matter told DayakDaily that a cheque presentation ceremony will be held on September 17 whereby Petronas is expected to hand over the cheque to Chief Minister Datuk Patinggi Abang Johari Tun Openg.

“This is indeed a historical milestone for Sarawak under Chief Minister Datuk Patinggi Abang Johari Tun Openg who has relentless fight for the rights of Sarawak as enshrined under Malaysia Agreement 1963 (MA63),” the source said.

The payment was the outcome of an agreement achieved between Petronas and the Sarawak State Government through a joint statement issued on May 8, 2020, whereby the two parties have reached an agreement on the management of Sarawak oil and gas assets, and the sales tax on petroleum products.

It further stated that both parties have agreed that the best approach to reach an amicable solution is through commercial settlement to create a stable environment for business and investments.


As such, Petronas has retracted its appeal against the decision by the Sarawak High Court in relation to a judicial review request dated March 13.

In return, the Sarawak State Government has dropped all claims in its civil case against Petronas for the payment of petroleum products sales tax.

“However, all agreements between Sarawak and Petronas under the Petroleum Development Act 1974 are still valid and in effect.

“Similarly, Petronas is still recognised as the nation’s oil company with the authority to regulate the development of the entire oil and gas industry in the nation, in line with the Federal Constitution,” the statement read.

Petronas, together with the Sarawak State Government, will continue to develop the industry in the State, it added.

“Meanwhile, Petronas will continue to engage the Sarawak State Government to facilitate a more active participation by the State Government in the investment opportunities in the oil and gas industry in the State, based on commercial terms.

“This includes collaborative opportunities at the operational level in Sarawak.

“To ensure the implementation of the commercial resolution, Senior Minister (Works) (Datuk Seri Fadillah Yusof) and Minister of Finance (Tengku Datuk Seri Zafrul Tengku Abdul Aziz) will be responsible to chair a joint committee for this purpose,” the statement added. —DayakDaily