Petronas makes full payment of 2019 state sales tax to Sarawak - Abang Johari

The Sarawak government has received the full payment of the five per cent petroleum products state sales tax (SST) for 2019 from Petroliam Nasional Bhd (Petronas), said Chief Minister Datuk Patinggi Abang Johari Tun Openg.

"He said Petronas and its subsidiaries had fully settled the payments of state sales tax on petroleum products for 2019, as assessed by the Comptroller of State Sales Tax in accordance with the provisions of the Sarawak State Sales Tax Ordinance, 1998.

"He said the amount paid by Petronas and its subsidiaries was without interest and penalties as Petronas had complied with the notices issued to it.

"He was speaking at a press conference after Petronas chairman Datuk Ahmad Nizam Salleh presented a cheque for RM2,956,671,407.36 to him at a ceremony at Wisma Bapa Malaysia here today.

"Abang Johari said the state sales tax for this year would be paid after assessment was made based on the volume of the petroleum products, namely crude oil, condensates, urea and liquefied petroleum gas, actually sold.

The payment of SST by Petronas and its subsidiaries is the result of a settlement reached between Petronas, the Federal Government and the state government, whereby Petronas, upon reaching an agreement to withdraw its judicial review appeal to the Court of Appeal, thereby and thus recognising the state’s constitutional power to impose the tax. The civil case by the state against Petronas was then withdrawn.

"Following this settlement of the legal proceedings, Petronas and its subsidiaries have registered as ‘taxable persons’ and submitted their returns to the Comptroller of State Sales Tax," he said.

Consequently, he said, the Comptroller had made an assessment of the tax due and Petronas and its subsidiaries were issued with the relevant notices under the ordinance on Sept 10 this year.

"The state also like to take this opportunity to thank Shell, Murphy Oil, Pertamina and Sapura OMV which have earlier complied and settled the taxes due to the state," he said, adding that sales tax collected from the other oil companies amounted to RM1.38 billion.

Abang Johari said the state government would now focus on discussions with the Federal Government to reach a commercial settlement on other matters relating to oil and gas found and produced in Sarawak.

Also present at the ceremony was Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

-- BERNAMA