Sabah mulls emulating Sarawak on petroleum sales tax

Kota Kinabalu: The State Government is considering emulating the move by the Sarawak State Government which has introduced a five per cent sales tax on petroleum products in the State beginning Jan 1, next year.Chief Minister Datuk Seri Mohd Shafie Apdal said the Sabah Government will look into it as it is definitely something that can help Sabah increase its revenue to better develop the State.

"We will look into that. It is definitely something that can help us increase our revenue...at least we can develop Sabah better, in tandem with what is required by the people of the State.

"We are mindful of the need for that sort of things. Sabah is one of the biggest producers of oil and gas in the country and we are looking at some aspects and how best we can realise it," he told a press conference after he tabled the 2019 State Budget, Friday.

Sarawak Chief Minister Datuk Patinggi Abang Johari Abang Openg said recently that after thorough analysis and careful consideration, the State Government has decided to impose a 5pc sales tax on crude oil, natural gas, liquefied natural gas, chemical-based fertilisers and gas-to-liquid products.

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Kota Kinabalu: The Sabah Government continued its momentum in managing the economy in line with the commitment and spirit of the Sabah Maju Jaya (SMJ) when it posted record high state revenue of RM6.973 billion last year.

"The revenue expected from the imposition of the tax on petroleum products is an estimated RM3.897 billion next year," said Abang Johari when tabling the 2019 Sarawak State Budget at the Sarawak Legislative Assembly recently.

Abang Johari said the higher revenue expected from this new revenue stream, together with other sources of revenue, as well as alternative funding, will support the State in its undertakings on major development programmes and projects.

So far, the Sabah State Government has only decided to impose a five per cent sales tax on fisheries products that are exported and imported into Sabah.

"Sabah is rich in marine resources and our seafood products are being exported abroad while, at the same time, there are complaints that we are facing a shortage in seafood for our local consumption," said Shafie.

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Meanwhile, Shafie said among the new initiatives which the new State Government has introduced is the allocation of RM24 million for the youths, which is in the forms of loans and grants, to encourage the younger generation to venture into business.

Others include incentive to encourage hill paddy cultivation which can generate a high income for farmers because the price for this type of rice is more expensive than others. - Larry Ralon

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