See asks if petroleum sales tax has consensus of relevant parties
BATU Lintang assemblyman See Chee How lauds the state government’s plan to impose the State Sales Tax on all petroleum products in accordance with the constitutional and legal financial framework of the federation.
See added all Sarawakians should welcome this move as it is a first step to assert Sarawak’s full rights and privileges to all its resources.
However, the Batu Lintang Assemblyman urged Chief Minister Datuk Patinggi Abang Johari Tun Openg to reveal whether the state government had reached an agreement with the federal government, Petronas and all those involved in the petroleum industry on the imposition of the five per cent. See, who is state PKR vice chairman, said this is to ensure that the sales tax could be implemented smoothly on January 1, next year and that the state would collect the projected RM3.897 billion tax revenue to finance the proposed development programmes and projects.
“To present Sarawak’s Budget 2019, we must ensure that there is certainty to our projected state revenue to enable the state government to meet the expenditure of the proposed hugely expanded development programme,” he said when commenting on Abang Johari’s announcement on the imposition of the tax starting Jan 1, next year when tabling the state Budget 2019 yesterday.
Abang Johari, who is also Minister of Finance and Economic Planning said the sales tax would be levied on petroleum products namely crude oil, natural gas, liquefied natural gas, chemical based fertilisers and gas to liquid products.
See said it was premature to announce next year’s state budget based on projected revenue from the imposition of the petroleum sales tax if no agreement had been reached among all the parties involved.
“I hope that we are not ‘counting the chickens before they hatch’, because the announcement of the surge in the projected state revenue for 2019, to the tune of RM3.897 billion was not accompanied by the necessary explanation on whether and how this substantial sum had been secured.”
See noted that the increase in the state’s revenue almost solely rested on the proposed imposition of five per cent State Sales Tax on petroleum products, estimated to increase ( State Sales Tax collection) from RM565 million to RM4.462 billion an increase of RM3.897 billion.
“It was not disclosed who is to pay the State Sales Tax on the proposed nine additional taxable goods which are listed as and under Item (d) ‘petroleum products’ under the Schedule to the State Sales Tax ( Taxable Goods and Rate of Tax) Order 1998.”
See said it appeared that the state government did not expect the federal government to pay as this substantial sum of RM3.897 billion was not mentioned in the national Budget 2019 which was tabled in the current sitting of the Parliament on November 2.
“Are we expecting Petronas or those involved in the petroleum industry and relating to the nine taxable goods which are listed as and under Item (d) ‘petroleum products’ to pay? Has there been any discussion and or agreement reached between the various parties concerned?” he queried.