KUCHING, Nov 13 — The Sarawak government chided critics who questioned its decision to impose a 5 per cent sales tax on petroleum products.
The state Second Finance Minister Datuk Seri Wong Soon Koh said Schedule 10, Part V, Section of the Federal Constitution grants Sarawak the legitimate right to impose the sales tax.
“Under the State Sales Tax Ordinance 1998, the state has already imposed sales tax on crude oil, crude palm kernel oil, lottery tickets and tyres, and this has been a good source of state revenue,” he said in his winding up speech in the Sarawak State Legislative Assembly here today.
Wong said the sales tax on those other items has generated an average RM550 million annually for the past five years.
“However, this revenue is far from enough to finance our development agenda,” he added, explaining the rationale to impose sales tax on petroleum products next year.
He said the sales tax on petroleum products would enable the state to collect additional revenue of RM3.897 billion, which will represent 37 per cent of the total estimated revenue of RM10.513 billion for 2019.
Wong said Sarawak needs more revenue to enhance its financial capacity to fund all the much long awaited and needed basic infrastructures and amenities that the people have been deprived of.
“Despite our intensifying efforts, it does not at all mean that the federal government is relieved of its responsibilities to continue funding development projects in Sarawak,” he said.
He said the projects include roads, bridges, water supplies, schools and higher learning institutions, hospitals and clinics and low cost housing.
Wong expressed his disappointment that Sarawak has not been given due consideration for a fair share of the federal Budget 2019, despite its tremendous contribution to the national economy.
He noted that Sarawak is getting only RM4.346 billion out of the total federal development expenditure of RM54.7 billion, which is 7.94 per cent, a mere increase of RM10 million as compared to 2018 allocation.
