Electronic tax

Sarawak Deputy Minister: Petroleum Product Sales Tax earns over 20% of PH pledged royalty in GE14

Deputy Minister of Sarawak’s Prime Minister’s Department (Labour, Immigration and Project Monitoring), Datuk Gerawat Gala, said this would mean that rural Sarawak would benefit from more infrastructure and economic development. important. — Photo by Borneo Post Online

Saturday, June 11, 2022 8:48 AM MYT

MIRI, June 11 – This year, state revenue from sales tax on petroleum product exports would exceed the 20% royalty figure proposed by Pakatan Harapan (PH) in his manifesto for the 14th general election .

Deputy Minister of Sarawak’s Prime Minister’s Department (Labour, Immigration and Project Monitoring), Datuk Gerawat Gala, said this would mean that rural Sarawak would benefit from more infrastructure and economic development. important.

“The success of the (ruling coalition) Gabungan Parti Sarawak (GPS) in obtaining a 5% sales tax on petroleum products has given Sarawak more revenue than the 20% royalty on crude (petroleum), which had been promised by PH but never fulfilled,” he told the Borneo Post when asked about the impact on state coffers after the price of oil hit a new high of US$124 a barrel on Thursday before falling slightly with Brent futures at US$123.58 (RM543.63). a barrel and US West Texas Intermediate (WTI) futures at US$122.11 (RM537.16).

Last October, Sarawak Prime Minister Datuk Patinggi Tan Sri Abang Johari Tun Openg – also Minister of Finance and New Economy – predicted that crude oil, liquefied natural gas (LNG) and other petroleum products could generate a sales tax of RM3.16 billion on revenue of RM10 billion expected this year.

In this regard, Gerawat, who worked in the oil and gas industry before entering politics, said that the increase in income would depend on the volume of crude oil production from wells and sales of petroleum products.

“With the expected increase in state revenues, I look forward to seeing accelerated rural development, especially in the provision of infrastructure and basic amenities such as roads, electricity and water. drinking water supply, as well as telecommunications and internet services which are very much needed.

“The availability of and access to good medical and educational facilities for the rural population is also essential. With better physical and digital connectivity, the socio-economic potential of huge rural areas can be developed to improve the livelihoods as well as the economic performance of our rural population,” he said.

Sarawak was the first state in the country to impose a 5% sales tax on petroleum products, in 2019. By September 2021, it had collected RM6.8 billion from the tax. — Borneo Post Online