Petronas weighs impact of Sarawak’s 5 pct sales tax on petroleum products

Petronas Twin Towers, a major tourist attraction — file pic. // Photo: Pixabay

KUCHING, Nov 10: Petronas is assessing the impact on the state’s proposal to impose a 5 per cent sales tax on petroleum-based products starting next year.

In a statement today, the national oil giant said it would continue to monitor developments on the matter while engaging with both federal and state governments.

“Following recent news reports on the Sarawak State government’s announcement to impose a 5 per cent sales tax on petroleum products in 2019, Petronas is currently assessing the impact of the proposal.

“Petronas will continue to monitor developments on this matter and engage with both the federal and Sarawak state governments,” it said in the statement issued by Petronas’ Media Engagement, Group Strategic Communications.

This sales tax was announced by Chief Minister Datuk Patinggi Abang Johari Tun Openg when tabling the 2019 state budget on Nov 5.

He said the sales tax would be levied on crude oil, natural gas, liquefied natural gas, chemical-based fertilisers and gas-to-liquid products. It would generate an estimated revenue of RM3.897 billion for the state.

“I would like to reiterate that the imposition of this sales tax on petroleum products is our right as enshrined in the Federal Constitution.

“We will continue with our efforts to enhance and diversify the state’s revenue base within the provisions of the law to enable us to accelerate development towards achieving our vision of making Sarawak a high-income state by 2030,” said Abang Johari. — DayakDaily