SABAH will introduce an amendment to its State Sales Tax law to allow oil and gas companies to appeal if they believe they have been unfairly taxed, said state Finance Minister Datuk Seri Masidi Manjun.
He said the move aims to improve transparency and create a more business-friendly tax framework, especially for petroleum-related firms operating in the state.
“We will create a system where companies who feel they’ve been taxed unfairly can appeal,” Masidi said during an SMJ Energy event on Wednesday night.
“They can go to a tribunal to ensure that when we collect money, there’s a reason […] and it’s done fairly.”
The amendment is also intended to simplify tax dispute resolution for both the government and the industry, Masidi added, noting the need to maintain investor confidence and continued industry growth in Sabah.
The state had imposed a 5% sales tax on petroleum products since April 1, 2019.
Calls for clarity over Ambalat
Masidi also weighed in on Prime Minister Datuk Seri Anwar Ibrahim’s recent remarks regarding the disputed Ambalat Block, warning against premature assumptions on the sensitive matter.
“The better way is to ask for clarification and statements from the federal government so that we know the facts, instead of just speculating,” he said.
He noted that Anwar’s comments — made during a visit to Jakarta on June 27 — lacked detail and could spark unnecessary speculation.
“We better get the facts right before making comments. Because otherwise it just becomes a speculation.”
The Ambalat Block, located off Sabah’s east coast, is a maritime zone long contested by Malaysia and Indonesia. The dispute stretches back to 1979, when Malaysia’s territorial map included the area, prompting objections from Jakarta.
Masidi said the issue is likely to be raised in Parliament, adding: “I’m sure our MPs will ask the question.”
Several Sabah leaders have voiced concern over Anwar’s statement suggesting Malaysia and Indonesia should proceed with joint development of the oil-rich area without waiting for a full legal resolution.
Deputy Chief Minister Datuk Seri Jeffrey Kitingan said he was disappointed that Sabah was not consulted on matters affecting its territorial rights.
Communications Minister Fahmi Fadzil confirmed that a follow-up consultation between both countries is scheduled for July 29 in Jakarta, resuming talks that stalled in 2017.
Fahmi also said the June 27 visit included discussions to revive the bilateral consultation mechanism, and that its outcomes were discussed in this week’s cabinet meeting. - July 3, 2025
