State’s 5 pct sales tax on petroleum products may backfire, says Azmin

By Nancy Nais

KUCHING, Nov 7: Economic Affairs Minister Datuk Seri Mohamed Azmin Ali says the state’s decision to impose a 5 per cent sales tax on petroleum products starting January next year may backfire.

“Such taxes will make our products unattractive because it will be more expensive compare to products from other countries. Should this happen, it will also affect the state’s production,” Azmin told reporters after his courtesy visit to Chief Minister Datuk Patinggi Abang Johari Tun Openg at the State Legislative Assembly building today.

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

Crude oil, natural gas, liquefied natural gas, chemical-based fertilisers and gas-to-liquid products will be taxed, creating additional revenue to support the state’s development plans.

“However, we will respect the state’s plans and decision. We will take a pro active outlook at it and discuss further because there were some concerns expressed by Petronas,” Azmin said.

He also welcomes the state’s decision to form a committee to determine and agree upon the representations for submission for the Sarawak representatives of the Malaysia Agreement 1963 (MA63) Steering Committee.

“This is in line with the decision made by Pakatan Harapan federal government to ensure that Sarawak and Sabah are well represented in the reviews and discussions (concering) MA63. As we’ve explained to Abang Johari, Petronas will provide more information so we can can discuss further.” — DayakDaily