Masidi said the sales tax revenue on petroleum products was estimated at RM1.1 billion this year and the figure collected was 73 per cent of the estimate. – Bernama photo
KOTA KINABALU (July 19): The Sabah government has collected RM808 million in sales tax on petroleum products for the first six months of this year, the Sabah State Assembly (DUN) was told today.
Sabah Minister of Finance II Datuk Seri Masidi Manjun said the sales tax revenue on petroleum products was estimated at RM1.1 billion this year and the figure collected was 73 per cent of the estimate.
“The revenue collected so far makes the total sales tax collection on petroleum products since it was implemented on April 1, 2020 until June 30, 2022 is RM2.458 billion.
“In the state government’s effort to expand resources and increase state revenue, two more petroleum products will be subject to state sales tax starting Aug 1, 2022. The products are ammonia and urea and are estimated to contribute RM46 million to state revenue this year,” he said.
He said this in response to an oral question from Datuk Seri Yong Teck Lee (SAPP-appointed Assemblyman) who asked what action was taken to claim State Sales Tax under the State Sales Tax Enactment 1958 for the oil and gas sector, and how much sales tax is estimated to be received by the state government.
Masidi, who is also the state Minister of Local Government and Change, said the state government always ensured that state revenue collection was not only strong but also optimised to contribute towards the development of the state and the well-being of the people as a whole.
“Therefore the state government is looking seriously not only on the collection of sales tax on petroleum products but also on all types of products subject to state sales tax.
“The state government will not hesitate to take action through all constitutional and legal rights to recover the State Sales Tax owed and arrears if any in order to safeguard the state’s sovereignty,” he said.
Meanwhile, Deputy Chief Minister Datuk Dr Joachim Gunsalam said the Sabah Oil and Gas Development Corporation (SOGDC) had signed two land lease agreements (Sublease Agreements) and eight memoranda of understanding (MoUs) with investor companies on March 24 and 29.
Dr Joachim, who is also Sabah Development and Industry Minister, said the investors wanted to develop oil and gas-related businesses at the Sipitang Oil and Gas Industrial Park (SOGIP).
He said the investment, among others, involved solid waste management, oil refinery, oil tank, silicon metal plant, power plant, green diesel plant, regasification facility and hydrogen-ammonia plant with an investment of RM19.8 billion.
“Following the lease agreement and MoU, my ministry through SOGDC continued discussions and coordination with the Investor companies to ensure that they can take the next steps as set out in the agreement and MoU.
“Among the efforts made is the Strategic Engagement Forum with SOGIP Investors and Service Providers on June 8, 2022 where all investors stated the extent of their efforts so far to fulfill their commitments, and how they can leverage their respective expertise for the common good,” he said when answering an oral question from Datuk Dr Yusof Yacob (BN-Sindumin) who wanted to know the further status of the RM19.8 billion investment involving SOGDC. – Bernama