KUCHING, Nov 2 ― Chief Minister Datuk Patinggi Abang Johari Openg today said he will address Petroliam Nasional Berhad’s (Petronas) failure to pay the state government sales tax on petroleum product exports.
The state government set October 31 for the oil company to pay the 5 per cent sales tax as required under the Oil Mining Ordinance, while foreign oil companies operating in Sarawak’s territorial waters have duly complied.
“Yes, it (sales tax) will be in my Budget speech,” he said when asked by reporters after witnessing the signing of an agreement between Saradise Sdn Bhd and Borneo International School for the construction of the school’s new campus.
“So, you have to wait for my Budget speech,” he told reporters.
Abang Johari, who is also the state minister of finance and economic planning, will table the state’s Budget for 2020 at the Sarawak State Assembly tomorrow.
The state government started collecting the sales tax this year after amending the OMO 1958 last year.
However, Petronas has failed to pay the sales tax.
The chief minister said his Budget speech will also touch on the on-going negotiation for the return of state’s rights and the Malaysia Agreement 1963 with the federal government.
