KUCHING: Petroliam Nasional Berhad (Petronas) has identified seven subsidiaries through which it will pay up the State Sales Tax (SST) owed to Sarawak, the High Court here was told this morning.

In a proceeding for Petronas to settle the recovery of the SST by the State Government, the counsel for the national oil company said the subsidiaries included Petronas Carigali Sdn Bhd.

The seven subsidiaries of Petronas would also be registered as taxable persons under the State Sales Tax Ordinance 1998 before Aug 15 this year.

In view of this settlement, the State government would no longer pursue its suit against Petronas.

The case was presided over by High Court Judicial Commissioner Alexander Siew.

Counsel Andy Tan appeared for Petronas, while State Legal Counsel Dato Sri JC Fong and state legal officer Nur Azhar Bujang represented the State government.

Today’s proceedings came after Petronas withdrew its Court of Appeal bid on Monday against the High Court dismissal of a judicial review over the imposition of SST by the state.

The Sarawak government, at the same time, also withdrew its cross-appeal.

On March 13 this year, the High Court ruled that Article 95B (3) of the Federal Constitution provided that the Legislature of Sabah and Sarawak may make laws for imposition of sales tax.

The provision stated that any sales tax imposed by state law to be deemed among the matters enumerated in the state list, the State Sales Tax Ordinance and any subsidiary legislation made thereunder is constitutional and valid.

The High Court then dismissed Petronas’s judicial review application to quash the notices of assessment issued by the Sarawak state government seeking the oil and gas company to pay RM1.3 billion in SST.