Malaysia

MP to raise commingled oil cargo tax uncertainty in Parliament

Clarification from the Royal Malaysian Customs Department (RMCD) was needed to provide industry players with greater certainty over their tax obligations.

Updated 1 month ago · Published on 21 Aug 2026 4:17PM

MP to raise commingled oil cargo tax uncertainty in Parliament
Puah said he would seek clarification in Parliament on the tax treatment of commingled oil cargo operations. - August 21, 2026

TEBRAU MP Jimmy Puah Wee Tse will raise concerns over uncertainty surrounding the taxation of commingled oil cargo stored in shore tanks at Tanjung Langsat Port, Johor, in Parliament.

He said clarification from the Royal Malaysian Customs Department (RMCD) was needed to provide industry players with greater certainty over their tax obligations.

“Any ambiguity in relation to taxation in this matter is most certainly a concern. As such, I hope and urge the Royal Customs to provide greater clarity on this matter to industry players.

“Clarity and certainty are important considerations for businesses, especially as we seek to grow the petroleum logistics and maritime sectors,” he said in a statement today.

Puah said he would seek clarification in Parliament on the tax treatment of commingled oil cargo operations.

As a member of the Parliamentary Special Select Committee on Economy and Finance, he said he would also urge the committee to call the relevant parties to explain the matter and seek a resolution.

“I will also urge the committee to call the relevant parties to provide clarification and seek a resolution to this matter,” he said.

Puah said clear guidance from the authorities was important to ensure industry players could operate in accordance with regulations while providing greater certainty to investors in the petroleum logistics and maritime sectors.

On July 15, the Malaysian Anti-Corruption Commission (MACC) and RMCD proposed establishing a special task force to monitor enforcement activities and tax collection at strategic ports.

However, no outcome from the proposed task force has been publicly disclosed to date.

Recently, maritime industry observer Datuk Seri Jeyenderan Ramasamy urged MACC to provide a substantive written response regarding a report lodged in June over alleged commingling or blending of petroleum cargo.

The Maritime Network Sdn Bhd chief executive officer said about two months had passed since the report was lodged on June 5, but no official written response had been received confirming the status of the report or which authority was responsible for the matter.

On Aug 14, the White House Office of Trade and Manufacturing Policy identified Malaysia among more than 40 countries at risk of facilitating tariff evasion through China-linked transhipment networks.

In its report, titled The Great Transshipment Scam: Rise, Scope, and Costs, the United States placed Malaysia in Tier 2 alongside Brazil, Indonesia, Thailand, Türkiye and Vietnam, stating that the country's deep-sea ports, manufacturing hubs and free trade zones could potentially serve as channels for diverting goods from China to evade US tariffs.

The report said Malaysia serves as a manufacturing and logistics hub, while highlighting the Penang-Kulim industrial corridor and the Port Klang Free Zone. – August 21, 2026

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