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KUCHING: Petronas’ RM2.95 billion sales tax settlement on petroleum products “comes on time” as many industries and development projects in Sarawak have been affected by the Covid-19 pandemic.
State Minister for Tourism, Arts, Culture and Youth and Sports, Abdul Karim Rahman Hamzah, said the money will be used for development projects that will benefit the state and its people in the long term.
He also said that this denied former finance minister Lim Guan Eng’s claim that the 5% state tax on sales of petroleum products was unjustified as it could increase costs and that investors might not want to invest in the oil industry. oil and gas (O&G) in Malaysia.
“Similarly, even Dr. Mahathir Mohamad did not seem to be supportive when he was prime minister. It was the determination of our Chief Minister Abang Johari Openg that led to this victory, ”he told FMT.
Karim also said it wouldn’t be surprising if DAP spun it around like “election candy.”
Meanwhile, Bukit Assek Assemblywoman Irene Chang urged Putrajaya to reveal the terms of the agreement between Petronas and the state and federal government.
He said it was good that Petronas finally paid the state sales tax (SST) on petroleum products, “but this should never be done at the expense of any concessions Sarawak makes to Petronas that could threaten our rights and interests as Sarawak residents. “.
Chang said that a joint statement issued in May by the Sarawak Deputy Minister in the Chief Minister’s Department (Law, State-Federal Relations and Project Monitoring) Sharifah Hasidah Sayeed Aman Ghazali and Petronas Chairman Ahmad Nizam Salleh stated that the alleged Terms of the agreement included the recognition of Petronas as a national oil company with full authority over the regulation of the entire development of the country’s O&G industry, including those of Sarawak.
“This contradicts the position taken by the state government throughout this time that the Petroleum Development Law of 1974 is unconstitutional and void and, therefore, unenforceable by law.
“Therefore, I urge the state government to practice transparency and accountability and reveal to the people all the details about the terms of the agreement,” he said.
