KUCHING: Petronas and its subsidiaries today paid RM2.95 billion in state sales tax (SST) on petroleum products to the Sarawak government.
Sarawak Chief Minister Abang Johari Openg said the oil and gas company had fully settled the payments for 2019, as assessed by the Comptroller of SST, in accordance with the provisions of the Sarawak State Sales Tax Ordinance, 1998.
He said SST for this year would be paid when assessment had been made based on the volume of the petroleum products, namely crude oil, condensates, urea and liquefied petroleum gas, actually sold and the sale value of these products.
“The payment collected from Petronas will be used to fund the on-going development projects in Sarawak,” he said after witnessing a cheque handing-over ceremony for RM2.95 billion at Wisma Bapa.
Finance Minister Tengku Zafrul Aziz and Deputy Chief Minister Douglas Uggah Embas were among those present at the ceremony.
Abang Johari said the SST payment settlement by Petronas was the result of an agreement reached by Petronas, the federal government and the state government.
Petronas agreed to withdraw its judicial review appeal in the Court of Appeal, thus recognising the state’s constitutional power to impose the tax. The civil case by the state against Petronas was then withdrawn, Abang Johari said.
“We will 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,” he said.