Since the implementation of the sales tax on petroleum products in April last year, the Sabah government has collected RM1.562 billion from oil and gas companies operating in the state, said Chief Minister Datuk Seri Panglima Hajiji Noor.

Hajiji, who is also state Finance Minister, said that the sales tax collected was not only on crude oil but also LPG.

He said this when replying to Senallang assemblyman Datuk Seri Shafie Apdal during the question and answer session of the State Assembly sitting here on Tuesday.

To Shafie’s question on whether the sales tax collected included petroleum by products, Hajiji said he does not have the information on hand but assured the Warisan president that he would check on it and revert the details to the latter.

“I will check into this as I do not have the details with me now,” he said, adding,”Kalau kita salah jawap (If we give the wrong reply) marah lagi Senallang.”

Hajiji said that he will inform the elected state representatives of the details later.

In reply to Luyang assemblyman Phoong Jin Zhe on whether the state government would consider reducing the sales tax which is said to be the highest in the country, Hajiji said there are no immediate plans to do so.

Phoong during the question and answer session also asked what was the State Government’s fiscal policy to resolve issues affecting the rakyat in Sabah.

“I want to know what the government’s fiscal policy is because I noticed that many ministries had their budgets slashed. There are many issues that need additional allocation to be resolved such as water supply and flood mitigation. With the RM1.5 billion revenue, what is the government’s fiscal policy to address these problems?” Phoong asked.

Hajiji in his reply pointed out that the allocations were decided following meetings conducted between the Finance Ministry and other ministries at the official level.

“We realize that we need as much allocation as possible to fulfill the interest of the people but we must be prudent and ensure that we spend according to the government’s financial capabilities.

“The ministries and government departments can still submit their proposals to the Finance Ministry if there are any projects or programs that need to be implemented immediately,” he said.

Earlier, Assistant Finance Minister Jasnih Daya told the House that the revenue collected from the sales tax was higher than the RM1.25 billion projected for 2021.

He said that due to the increase in global commodity prices, the figure was revised higher to RM1.4 billion this year.

Of the total RM1.4 billion, some 98.9 per cent or RM1.385 billion has been paid to the state, Jasnih said.

Hajiji also revealed to the House the breakdown of the overall collection of the sales tax, namely Petronas Carigali, RM444.5 million, Petronas, RM429.9 million, ConocoPhillips Sabah Ltd, RM212.8 million, Sabah Shell Petroleum Company Ltd, RM210.7 million, PTTEP Sabah Oil Ltd, RM76 million, Petronas Floating LNG1 Ltd, RM63.6 million, Petronas Floating LNG2 Ltd, RM56.6 million, Repsol Oil and Gas Malaysia Lt, RM31.3 million, PT Pertamina Malaysia Explorasi Produksi, RM28.9 million, ConocoPhillips Sabah Gas Ltd, RM7.7 million and PNP Malaysia Venture Sdn Bhd, RM460,000.

Source:
courtesy of THE BORNEO POST

by THE BORNEO POST

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