CM: S’wak will not review rate of sales tax on petroleum products

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Datuk Patinggi Abang Johari Tun Openg – File photo

KUCHING: Chief Minister Datuk Patinggi Abang Johari Tun Openg said today that Sarawak will not review the rate of its sales tax on petroleum products.

He said all oil and gas industry players had already paid the five per cent sales tax, imposed from Jan 1 this year, but only one firm “is still negotiating”.

“We have our rights to impose the sales tax. If industry player do not want to pay, that’s a crime. It’s only five per cent, not a lot, just a little,” he said at the launch of PricewaterhouseCoopers (PwC) Malaysia Kuching office at Wisma STA here.

Abang Johari said the Sarawak government would not review the rate just because of the request from a player.

He added that the firm “knows that it is our rights” (to impose the sales tax) but they want us to review the rate”.

The Chief Minister said Sarawak is not backing down as far as this five per cent sales tax on petroleum products is concerned.