CM: Petroleum sales tax revenue to be partially channelled to develop coastal areas

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Wan Ali (second right) presents the hamper to Abang Johari. – Photo by Tan Song Wei

KUCHING: The revenue collected from the imposition of sales tax on petroleum products in Sarawak from Jan 1, 2019 will be partially channelled to develop the coastal areas.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said his administration would not need to request for fund from the federal government when it came to developing the coastal areas.

“For example, if they want the Kemena Bridge, I say go ahead and build it, we have revenue from the sales tax (on petroleum products next year).

“With the revenue from this sales tax, we can further develop our state of Sarawak. We can pursue our coastal highway project to link Lundu, Simunjan and all the way to Bintulu.

“This is for the benefits of all Sarawakians and especially the coastal areas,” he said when closing the ‘Marhaban Competition’ organised by the Sarawak National Malays Association (PKMS) at the CIDB Convention Centre Kuching at Jalan Sultan Tengah here today.

Among those present was PKMS deputy president Dr Wan Ali Tuanku Madhi.

Once the coastal highway is put in place, Abang Johari believed that the household income of the rural folk as well as farmers will go up accordingly.

He said not only will the Sarawak government bring about development in coastal areas but it will also make sure every household across the state is eventually equipped with electricity and treated water supply.

Last month, Abang Johari announced that a five per cent sales tax would be imposed on petroleum products in Sarawak from Jan 1 next year.

Such tax will be imposed on crude oil, natural gas, liquefied natural gas, chemical-based fertilisers and gas-to-liquid products.

The revenue expected from the imposition of sales tax on these petroleum products is an estimated RM3.897 billion next year.

He made this announcement during the tabling of the State Budget 2019 at the State Legislative Assembly sitting.