KOTA KINABALU: Sabah expects to collect RM50 million every month following its decision to impose a 5% sales tax on all petroleum products, Chief Minister Shafie Apdal said.
He said the first tax collection from the nine production sharing contract (PSC) companies is scheduled by May 28 after the state enforced the law on Apr 1.
“This is based on oil and gas production in 2019 and a forecast price of US$25 per barrel for crude oil and US$1.80 per million British thermal unit (MMBTU) for natural gas.
“If the prices for these go up, we will receive more in taxes,” he told the state assembly today.
Shafie said the state finance ministry has notified national oil company Petronas, which owns oil and gas blocks in Sabah, on the matter.
He said of the nine PSCs, only seven have reached out to the state.
“No one is allowed to sell or supply any taxable petroleum product unless they obtain a state sales tax licence.”
Meanwhile, Shafie welcomed the creation of a Sabah and Sarawak affairs portfolio by the federal government to deal with state rights under the Malaysia Agreement 1963 (MA63).
He said Putrajaya should set up a council to replace the now-disbanded special Cabinet committee to review and implement the MA63, established by the previous Pakatan Harapan government.
“We hope all the efforts and decisions achieved by the committee will be taken into account and implemented. Many of the issues were resolved previously.
“The state government hopes the federal government will come up with a terms of reference (TOR),” he said. - FMT
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