KOTA KINABALU – The Gabungan Rakyat Sabah-led government has former chief minister Datuk Seri Mohd Shafie Apdal to thank for the RM1.25 billion sales tax it expects from Petronas, said a Warisan representative.
Warisan’s Merotai assemblyman Sarifuddin Hatta said the current state government owes it to Shafie, who had taken the initiative to restore Sabah’s rights according to the Malaysia Agreement 1963.
“I am compelled to say this because I have noted a statement from Sabah Deputy Chief Minister Datuk Seri Jeffrey Kitingan that the prime minister has agreed to Sabah collecting 5% sales tax from Petronas,” said Sarifuddin.
“He said the state would be able to collect RM1.25 billion from the national oil company starting next year. Jeffrey should thank Shafie for this.”
Sarifuddin said the 5% sales tax plan started in 2018 when Shafie was still chief minister and was part of the federal-state talks between the chief ministers of Sabah and Sarawak and then prime minister Tun Dr Mahathir Mohamad.
“The committee chaired by Dr Mahathir was supposed to decide in March but due to the power transition at the federal level, all matters were postponed.
“As a result of this, Shafie had instructed the Sabah Finance Ministry to send letters to all petroleum firms on the sales tax.
“The reason for the tax is that the Warisan-led Sabah government then believed the federal government would not give the state enough allocations and therefore had to find its own revenue.”
He said such a move resulted in Sabah having a new stream of revenue.
All foreign oil companies operating in Sabah have agreed to pay the 5% sales tax. – The Vibes, November 9, 2020
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