According to The Borneo Post, the two firms are Repsol Oil and Gas Ltd and SEA Hibiscus Sdn Bhd. Masidi reportedly said there was no problem with the other oil and gas companies operating in Sabah as they had been paying the SST on time.

He added that Sabah would be able to rake in RM1.2 billion annually if all of the firms had paid the SST on time.

Masidi who is also state local government and housing minister reportedly said the issue was “being dealt with” by Sabah and Petronas, while the state government would pursue the matter within its legal power.

In July, Masidi told the state assembly that Sabah would cancel the work permits of the two firms if they failed to settle the RM97 million in SST owed to the state.

He said the two companies were issued notices on the overdue SST on June 21, with the amount set to be settled within 30 days.

Masidi had also said Sabah collected RM808 million in SST on petroleum products in the first six months of the year.

The total collected from the implementation of the sales tax on April 1, 2020 until June 30 this year amounted to RM2.45 billion.