Sarawak welcomes court decision on right to sales tax

KUCHING: The Sarawak government has welcomed the High Court’s decision last Friday to dismiss Petronas’ judicial review application to challenge the state’s right to impose sales tax on petroleum products.

In a statement, the Chief Minister’s Office said it had always been the state’s stand that the right to impose sales tax is entrenched in the Federal Constitution, the Malaysia Agreement 1963 and the Inter-Governmental Committee Report Report.

It voiced hope that there would be no further delay to the implementation of the state sales tax.

“The decision by the High Court is based on clear points of law which Petronas should recognise and adhere to.

“This will enable the state government to proceed with its development agenda for the benefit of the people of Sarawak,” it said.