Petronas will not appeal against SST ruling: Abang Jo

Abang Johari speaking (seated centre) with other PBB top leaders, speaking to members of the media after chairing PBB Supreme Council meeting at PBB headquarters along Jalan Bako in Kuching today.

By Peter Sibon

KUCHING, June 12: Petronas will not pursue with its appeal involving its case against the Sarawak government on the 5 per cent State Sales Tax (SST).

Chief Minister Datuk Patinggi Abang Johari Tun Openg today clarified that the case at the Court of Appeal to be held on June 23 was just court management and that Petronas actually had withdrawn the case and abided by the ruling of the High Court, that Sarawak has the right to impose the 5 per cent SST.

“Petronas is in the process of withdrawing from the court case. That’s why the federal government directed them not to appeal.”

He stated that the appeal was made before the change of government on February 29, 2020.


“But the new government said no need to appeal, just comply as ordered by the court based on Federal Constitution, Malaysia Agreement 1963 (MA63) and Inter-Governmental Committee (IGC),” Abang Johari told a press conference after chairing Parti Pesaka Bumiputera Bersatu (PBB) Supreme Council meeting at PBB headquarters today.

As such he was confident that Petronas would soon pay its dues as ordered by the court.

“June 23 is just a court procedure. (And) I was made to understand that the federal government wanted this issue to be settled. That means they don’t have to appeal.

“They have to withdraw the appeal and pay whatever the ruling by the High Court. So they have to pay the SST. It has to go through the court for case management when you want to withdraw,” he reiterated.

Abang Johari who is also the Finance Minister revealed that the amount due to Sarawak would be RM2.878 billion as calculated by State Comptroller of Tax.

“That is based on our calculation of 5 per cent SST. But Petronas may have its own calculation,” he added

The Chief Minister was clarifying on conflicting reports whether Petronas would proceed with its appeal or abide by the High Court ruling. —DayakDaily