Sarawak vs Petronas: Ting urges oil giant to pay taxes owed and don’t delay on payment

Datuk Sebastian Ting - file pic

By Lian Cheng

KUCHING, Mar 13: Petronas has been urged to pay the State Sales Tax which it owes to Sarawak and not to appeal the decision following today’s Kuching High Court dismissal of its judicial review.

Sarawak United Peoples’ Party Secretary General Datuk Sebastian Ting said there should not be any delayed payment since the court has judged.

“Petronas should not delay payment and must not appeal against this court decision just to delay and frustrate Sarawak’s development plan for the people of Sarawak.

Ting who is also Tourism, Arts and Culture Assistant Minister further held that the Prime Minister Tan Sri Muhyiddin Yassin should intervene and instruct Petronas to withdraw the suit against Sarawak government.

“The prime minister should just instruct to withdraw the suit against Sarawak government and allow consent judgement of RM1.3 billion be entered in favour of Sarawak Government against Petronas,” Ting told DayakDaily.

He said he was very glad of the court’s decision as it confirmed that the Sarawak government had the legal right to impose the 5 per cent State Sales Tax on exported petroleum products.

The High Court here today has dismissed the judicial review application filed by Petronas.

Judge Azahari Kamal Ramli ruled that the Sarawak government had the power to impose the 5 per cent state sales tax on petroleum products and collect it from the national oil company.

Upon considering the submission, he found that the State Legislative of Sarawak may make laws for the imposing of sales tax and any sale tax under Act 95B(3) of the Federal Constitution where any sales tax imposed by the state law shall be deemed to be among matters enumerated in the State List and not the Federal List.—DayakDaily

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