Friday, September 29

RM1.25 bln petroleum sales tax collected from Petronas so far



KOTA KINABALU (Sept 29): The Sabah government has collected RM1.25 billion in sales tax on petroleum products from Petroliam Nasional Bhd (Petronas) since the tax was introduced last year.

Chief Minister Datuk Hajiji Noor said this consisted of RM177.88 million for 2020 and RM1.07 billion this year up to August.

The sales tax on petroleum products was part of the RM3.83 billion revenue collected by the state as of Aug 31 this year, he said, adding that the state’s revenue collection exceeded the target set for the period by 120 per cent.

Hajiji noted that the payment of petroleum sales tax was included in the agreement reached in his first meeting with former prime minister Tan Sri Muhyiddin Yassin after he took his oath of office as chief minister and Gabungan Rakyat Sabah (GRS) took over the state’s administration a year ago.

“Among the things agreed on was for Petronas to start paying sales tax on petroleum products immediately,” he said at a ceremony to commemorate the administration’s first year in power at the Sabah International Convention Centre on Wednesday.

Also present were the three Sabah Deputy Chief Ministers — Datuk Seri Bung Moktar Radin, Datuk Dr Jeffrey Kitingan, and Datuk Dr Joachim Gunsalam.

Hajiji said apart from the petroleum sales tax, the state government also targeted to collect dividend payments of RM100 million from state statutory bodies and government-linked companies this year to boost its coffers.

As of September, dividends amounting to RM25.72 million had been collected; and he said the RM100 million target was expected to be achieved by year-end.

Hajiji said the Sabah government would also explore the state’s natural resource reserves alongside sustainable management through several initiatives being planned, including development and revenue generation through carbon credit trading, raising new revenue through mineral resources, rejuvenating economic activities, and promoting the circulation of money through household spending.

At the ceremony, the chief minister also launched the Sabah Welfare Foundation, which is being set up to assist the state government to drive the welfare agenda, as well as functioning as an institution to boost the cooperation between the government and non-governmental organisations, corporates and private organisations that are prepared to seek funds and donate to those who are less fortunate and have special needs.

The foundation, he said, would be managed professionally by trained social workers to ensure the aid is channeled in a transparent manner and reaches the target groups. – Bernama