Sales tax on petroleum products conforms to constitution — DCM

The sales tax on such products does not burden the ordinary people; the budget spills out a new financial model to source for competitive alternative funding.

THE imposition of five per cent sales tax on petroleum products, effective Jan 1 next year, is done based on Sarawak’s rights and within the ambit of Sarawak constitution.

According to Deputy Chief Minister III Datuk Amar Awang Tengah Ali Hasan, the tax should serve as a new source for Sarawak’s revenue stream.

“The sales tax on such products does not burden the ordinary people; the budget spills out a new financial model to source for competitive alternative funding.

“It is not a budget meant for a snap state election,” he said in commenting on the 2019 Sarawak Budget tabled by Chief Minister Datuk Patinggi Abang Johari Tun Openg on the first day of the Sarawak State Legislative Assembly ( DUN) sitting here yesterday.

Abang Johari had announced that the sales tax would be levied on petroleum products namely crude oil, natural gas, liquefied natural gas ( LNG), chemicalbased fertilisers and gas to liquid products.

He also said the revenue expected from the tax next year would be estimated at RM3.897 billion.

In this regard, Awang Tengah said Sarawak should be able to pursue developments and implementation of projects required by the people, as well as to expand economics activities in Sarawak with the increased budget.

He said with the ‘ big budget’, Sarawak could also undertake some projects that are supposed to be the responsibility of the federal government such as repairs and building works on dilapidated schools.

Datuk Amar Awang Tengah Ali Hasan, Deputy Chief Minister III

“The federal budget does not give high hopes for Sarawak to leapfrog (into) the pace of development.

“Therefore, we cannot totally rely on the federal government,” he said.

Crediting Abang Johari for the budget, Awang Tengah said Sarawakians must appreciate the efforts made by the chief minister in this respect.

Moreover, he described the Sarawak budget as ‘a very creative budget’, ‘rural-biased in terms of more allocations for development’, a ‘surplus budget’ and ‘the biggest ever in Sarawak history’.