Enough is enough, Rundi (right) told the media in regards to the payment of the five per cent state sales tax.
KUCHING: There will be no further deadline extensions for national oil giant Petroliam National Berhad (Petronas) to pay the five per cent state sales tax imposed on petroleum products owed to the Sarawak government, said Utilities Minister Dato Sri Dr Stephen Rundi Utom.
“No more new deadlines. We cannot compromise as our Chief Minister Datuk Patinggi Abang Johari Tun Openg has already stated that we did not impose the sales tax based on our whims and fancies but we did it because of the rule of law,” said Dr Rundi.
During the tabling of the 2020 State Budget in the recently concluded 18th State Legislative Assembly meeting, Abang Johari said a Notice of Assessment has been issued to Petronas to pay the outstanding sales tax, failing which, the state will allow the law to take its course.
“Enough is enough for us. We have the rights (to impose the sales tax). The agreement has already been made and nothing can change the law,” said Dr Rundi, who added that interest might be charged on the outstanding amount after the deadline has passed.
He said this at a press conference after officiating at the soft launching of the International Energy Week 2020 at Land Custody and Development Authority Tower, Isthmus here today.
He pointed out that other oil industry players in Sarawak such as Shell, Murphy Oil and Nippon Oil had already paid up the sales tax imposed and he questioned on what grounds Petronas chose not to comply with the local laws.
“Sarawak is in dire need of such allocation to actually develop Sarawak. We are not even on par in terms of infrastructure development with the states in Peninsula Malaysia.”
Petronas had previously requested the deferment on the payment of the five per cent sales tax on petroleum products, effective Jan 1 this year, to June before extending to October by the state government.
It is reported that Petronas had derived a total revenue of exceeding RM600 billion from the production and sales of oil and gas within Sarawak territory between 1976 to 2017.