Petro tax to boost coastal devt

Part of revenue from 5 per cent sales tax on petroleum products to develop coastal region, says Chief Minister

KUCHING: Revenue collected from the imposition of sales tax on petroleum products in Sarawak from Jan 1, 2019 will be partially channelled to develop coastal areas in the state.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said his administration would not need to request for funds from the federal government when it comes to developing these areas.

“For example, if they ( people) want the Kemena Bridge, I say go ahead and build it. We have revenue from the sales tax ( on petroleum products next year).

“With the revenue from this sales tax, we can further develop our state of Sarawak. We can pursue our coastal highway project to link Lundu, Simunjan all the way to Bintulu.

“This is for the benefits of all Sarawakians and especial ly the coastal areas,” he said when closing the ‘ Marhaban’ compet i t ion organi sed by Sa rawak Ma l ay Nat iona l Association ( PKMS).

The event , held at CIDB Convention Centre Kuching yesterday, was also attended by PKMS deputy president Dr Wan Ali Tuanku Madhi.

Abang Johari said once the coastal highway is in place, he believes the household income of rural folk as well as farmers will go up accordingly.

He said not only will the Sarawak government bring about development in coastal areas, but it will also make sure every household across the state is eventual ly equipped with electricity and treated water supply.

During the tabling of State Budget 2019 at the State Legislative Assembly sitting last month, the chief minister announced that a five per cent sales tax would be imposed on petroleum products in Sarawak from Jan 1 next year.

Such tax will be imposed on crude oil, natural gas, liquefied natural gas, chemical- based ferti lisers and gas- to- liquid products. The revenue expected from the imposition of the tax is estimated to be more than RM3.8 billion next year.

With the revenue from this sales tax, we can further develop our state of Sarawak. We can pursue our coastal highway project to link Lundu, Simunjan all the way to Bintulu. Datuk Patinggi Abang Johari Tun Openg, Chief Minister