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5pct petroleum product sales tax overly burdensome?


Last Update: 07/11/2018




KUCHING, Nov 7 (Bernama) -- Sarawak Pakatan Harapan chairman, Chong Chieng Jen, foresees Sarawakians paying more for petroleum products when the state government imposes a sales tax from Jan 1, 2019.

The Kota Sentosa assemblyman voiced his concern when debating the State Supply (2019) Bill during the State Legislative Assembly sitting today.

He said the five per cent sales tax on crude oil, natural gas, liquefied natural gas, chemical-based fertilisers and gas to liquid products announced during the tabling of the state budget on Nov 5 will affect consumers, industry players, as well as the agriculture and transport sectors.

"This budget has been termed the biggest in Sarawak history with an additional income of RM3.897 billion expected from the sales tax levied on petroleum products,” he said. 

The development-based and rural-focussed 2019 budget announced by Chief Minister Datuk Patinggi Abang Johari Tun Openg totals RM11.914 billion.

"Although the state government has found an extra source of income, my question to the Sarawak Finance Minister (Abang Johari) is: would the imposition of sales tax on petroleum products be something like the 4D lottery ticket whereby in West Malaysia it is sold for RM1, but in Sarawak it is RM1.10, as 10 per cent goes to the state coffer.

"Has the state government done a study on how this tax is going to affect our Sarawak industry. I foresee that at the end of the day we are going to pay more," he added.

-- BERNAMA


 



 
 
 
 
 
 
 
 
 
     
   
 

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