Sarawak sales tax to benefit the people – CM

Sarawak government has sued Petronas for unpaid state sales tax and penalties amounting to RM1.3 billion. (NSTP Pic)

By Emma Victoria

THE Sarawak government welcomes the decision by the High Court on Friday to dismiss the judicial review application by Petronas to challenge the rights of the state to impose state sales tax on petroleum products.

The Chief Minister’s office in a statement today said it has always been the firm stand of Sarawak that this right to impose the tax is entrenched in the Federal Constitution, read together with the Malaysia Agreement 1963 and the Inter-Governmental Committee Report (IGC Report).

“With this decision, it is hoped that there will be no further delay to the implementation of the imposition of the State Sales Tax caused by possible appeals and other applications by Petronas.

“The decision by the High Court has been based on clear points of law which Pwtronas should recognise and adhere to.

“This would enable the Sarawak Government to proceed with its development agenda for the benefits of the people of Sarawak.”

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