RM1.79 billion earned in Sales Tax
Published on: Wednesday, November 30, 2022
By: Anthea Peter
.jpg "RM1.79 billion earned in Sales Tax")
“(Projection) changes from time to time due to fluctuating oil prices. We made adjustments as the oil and gas market is highly volatile,” Masidi said.
Kota Kinabalu: The State Government has collected a total of RM1.79 billion in State Sales Tax (SST) on petroleum products as of Nov 28.State Finance Minister II Datuk Seri Masidi Manjun said the amount collected was higher than the initial estimated amount of RM1.1 billion.
ADVERTISEMENT
He explained that the initial projection was made when the international oil price was US$53 per barrel.
“(Projection) changes from time to time due to fluctuating oil prices. We made adjustments as the oil and gas market is highly volatile,” he said during question time at the State Legislative Assembly sitting, here, Monday.
He was responding to Nominated Assemblyman Datuk Seri Yong Teck Lee who asked how much revenue the State Government has collected from petroleum products so far.
To a supplementary question by Sindumin Assemblyman Datuk Dr Yusof Yacob who pointed out Sarawak’s higher sales tax collection on oil and gas products, Masidi said it was because Sarawak has more downstream activities in the sector.
ADVERTISEMENT
“Sarawak is ahead in terms of down-streaming of petroleum products. Since down-streaming is subject to tax, they collect more sales tax than Sabah,” Masidi explained.
On Monday, Sarawak Premier Tan Sri Abang Johari Openg was reported as saying that Sarawak is slated to collect a revenue of RM3.2 billion from crude oil, liquefied natural gas and other petroleum products.
ADVERTISEMENT
Masidi assured that the Sabah Government will look into ways to expand resources and increase its sales tax revenue in the sector.
“We are gradually expanding our revenue base in petroleum products, the newest (measure) is we have started collecting tax on urea and ammonia.
“Even though its contribution is not much as of now, we hope that as these industries eventually grow, it can yield additional tax (revenue) to the State,” he added.
The SST was imposed on urea and ammonia effective Aug 1 this year, which are estimated to contribute a total of RM46 million to the State revenue for 2022.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
