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KOTA KINABALU: Sabah opposition leaders are happy that the sales tax on petroleum products is being met and paid soon.
Penampang MP Datuk Darell Leiking said the 5% sales tax was applied in April this year by the then Warisan-led state government.
“Eight of the nine oil and gas companies in Sabah had started to pay this tax, except Petronas, and now I am glad that they finally agreed to pay,” he said on Saturday (December 19).
The former minister of Industry and International Trade said Petronas had not paid the tax until August this year, citing various reasons and had asked for more time to investigate the matter.
Leiking said that, by law, Petronas must pay the tax and that the current government could pursue the matter if the company does not pay.
Following the trade deal between Sarawak and Petronas earlier this month, he said he hoped Prime Minister Tan Sri Muhyiddin Yassin could get a similar deal for Sabah.
The trade agreement was signed after both Petronas and Sarawak agreed on terms related to the imposition of the state sales tax (SST) and the state’s decision to regulate oil extraction in Sarawak.
Introducing the state budget on Friday (December 18), Chief Minister Datuk Seri Hajiji Noor said that Sabah is expected to earn an estimated income of RM1.25bil from the implementation of the state tax on the sales of petroleum products in 2021. .
He said the new tax is expected to be the largest contributor to state revenue.
Kota Kinabalu MP Chan Foong Hin said Hajiji’s announcement on the sales tax on petroleum products was a good start to increase state revenue as enshrined in the federal and state constitutions.
Tuaran MP Datuk Seri Madius Tangau said that while the payments should have been made earlier this year, he still feels hopeful after hearing Hajiji’s budget announcement.
“This is very good for Sabah,” he said.
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