A High Court here today dismissed an application by Petroliam Nasional Berhad (Petronas) for a judicial review to declare the State Sales Tax (SST) imposed by the Sarawak Government as null and void.
In making the ruling, High Court Judge Azhahari Kamal Ramli, also awarded costs of RM50,000 to the respondents, which are the Sarawak Comptroller of State Sales Tax and the Sarawak State Government.
He said there was no grounds for the court to grant the declaration as Article 95B (3) of the Federal Constitution which provides that the Legislature of Sabah and Sarawak may also make laws for the imposing of sales tax, and any sales tax imposed in the two states shall be deemed to be among the matters enumerated in the State List and not in the Federal List.
Azhahari Kamal said since Article 95B (3) of the Constitution stated that any sales tax imposed by state law to be deemed among the matters enumerated in the state list, the State Sales Tax Ordinance and any subsidiary legislation made thereunder is constitutional and valid.
"Based on the above reasons, there is no merit in the application for the declaratory relief," he added.
The High Court heard the submissions from the parties involved last Jan 3 and 4 where Petronas as the applicant was represented by counsels Datuk Malik Imtiaz Sarwar and Alvin Chong, while the respondents were represented by the state legal counsel Datuk Seri J C Fong and State Attorney-General Datuk Talat Mahmood Abdul Rashid.
The application, among others, was to seek a declaration from the court that the State Sales Tax (Taxable Goods and Rate of Tax) (Amendment) (No 2) Order 2018, Section 2, 7, 8, 11(1), 12(1), 12(6), 12(7) and 15(d) of the Sarawak Sales Tax Ordinance 1998 and Regulation 19 C, Sarawak State Sales Tax Regulations 1998 were ultra vires the Federal Constitution and thus null and void.
Speaking to reporters outside the court later, Malik Imtiaz said that he would be waiting for further instructions from his clients whether to proceed to appeal against the decision or otherwise.
“We will be studying the grounds of the dismissal before discussing further (on the next course of action) with our client (Petronas) on the matter,” he said.
Meanwhile, Fong said that he hoped that the court’s decision would be accepted by Petronas and it would not proceed to appeal against the judgment.
“And (I hope) Petronas, Petros (state-owned oil and gas company) and the State Government will work together to help the oil and gas industry, which is currently coming under challenging time because of low oil prices and low global demand,” he added. - BERNAMA
Bernama
Fri Mar 13 2020
A High Court today dismissed an application by Petroliam Nasional Berhad (Petronas) for a judicial review to declare the State Sales Tax (SST) imposed by the Sarawak Government as null and void.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.