CM: S’wak govt not backing down on imposing 5 pct sales tax on Petroleum products

Posted on : 03 Jan 2019  Source of News: The Borneo Post
 

Datuk Patinggi Abang Johari Tun Openg

KUCHING: Sarawak government is not backing down on imposing the five per cent sales tax on Petroleum products in the state.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said this issue had been deliberated during the during the Dec 17 meeting called by the Federal Government Special Cabinet Committee on Malaysia Agreement 1963 (MA63).

He said Finance Minister Lim Guan Eng had during the meeting last month mentioned that the imposition of the said sales tax “is not fair”.

“But I told him it is our right to impose the sales tax,” he told a news conference here today.

Abang Johari said the federal minister reasoned that the five per cent sales tax would put Malaysia in an uncompetitive position – not being able to attract foreign investors.

To this, the Chief Minister said the federal government should review the current 38 per cent imposed under the Petroleum Income Tax Act 1967 in order to remain competitive.