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KUCHING: Petronas and its subsidiaries today paid RM2.95 billion in state sales tax (SST) on petroleum products to the Sarawak government.
Sarawak Chief Minister Abang Johari Openg said that the oil and gas company had fully settled payments for 2019, as assessed by the SST Controller, in accordance with the provisions of the Sales Tax Ordinance of the Sarawak state, 1998.
He said this year’s SST would be paid when an assessment was made based on the volume of petroleum products, i.e. crude oil, condensates, urea and liquefied petroleum gas, actually sold and the sales value of these products. .
“The payment collected from Petronas will be used to finance ongoing development projects in Sarawak,” he said after witnessing a RM2.95 billion check-giving ceremony in Wisma Bapa.
Finance Minister Tengku Zafrul Aziz and Chief Deputy Minister Douglas Uggah Embas were present at the ceremony.
Abang Johari said that Petronas’ SST payment arrangement was the result of an agreement reached by Petronas, the federal government and the state government.
Petronas agreed to withdraw its appeal for judicial review in the Court of Appeals, thus recognizing the constitutional power of the state to impose the tax. The state’s civil case against Petronas was later dropped, Abang Johari said.
“We will now focus on discussions with the federal government to reach a trade agreement on other issues related to the oil and gas found and produced in Sarawak,” he said.
