Datuk Sharifah Hasidah Sayeed Aman Ghazali. – File picture

KUCHING (Aug 6): Sarawak’s State Sales Tax (SST) bill for Petroliam Nasional Berhad (Petronas) for January to June 2019 amounts to almost RM1.3 billion including penalties for late payment and interest, said de facto law minister Datuk Sharifah Hasidah Sayeed Aman Ghazali.

The assistant minister in the Chief Minister’s Department (law, state-federal relation and project monitoring) said in a statement this morning that Petronas had given written confirmation that the SST on petroleum products would be paid by its seven subsidiaries.

She said the subsidiaries, including Petronas Carigali Sdn Bhd, were directly involved in the sale of petroleum products in Sarawak.

These subsidiaries were in the process of being registered with the Comptroller of SST as taxable persons liable for payment of SST to the State Government and the registration process would be completed by Aug 15 2020,” she said.

“Petronas has given written assurance that these subsidiaries will pay the SST when so assessed,” said Sharifah Hasidah.

She pointed out that the State Government and the Comptroller of State Sales Tax have withdrawn the civil suit filed by them against Petronas to recover the SST.

Petronas has also withdrawn its counterclaim against the State Government and the Comptroller for wrongfully imposing SST on Petronas for sale of petroleum products for the said period, she added.

Sharifah Hasidah said the Comptroller was now making an assessment of the amount of SST which each of the subsidiaries had to pay for the year 2019 based upon records of volume of petroleum products actually sold by them and declaration of the sale value thereof provided by the subsidiaries.

Such assessment, she said, would be made by the Comptroller strictly in accordance with the provisions of the State Sales Tax Ordinance 1998 and the State Sales Tax Regulations 1998, adding that no discount or waiver would be granted.

“With the withdrawal of Petronas’ Appeal against the High Court decision that affirms the State’s constitutional authority to impose SST on petroleum products and the termination of the legal process today to recover SST from Petronas which given an assurance that its subsidiaries will be paying the SST, the issue of the State’s rights to levy SST on petroleum products is finally settled,” said Sharifah Hasidah.

Sharifah Hasidah said the state government would now focus on strengthening Petroleum Sarawak Berhad (Petros), and Sarawakians companies’ participation in the oil and gas sector in collaboration with Petronas.