KUCHING: The five percent sales tax on petroleum products will apply only to petroleum products meant for the export market.
Chief Minister Datuk Patinggi Abang Johari Tun Openg said despite clarifications on the matter, many were still confused.
“The sales tax is only one point, where the process from the natural gas to liquefied natural gas (LNG) will not be taxed, but once LNG is being exported, only then tax will be imposed,” he said.
“Let me be clear, the five percent sales tax on LNG is only being charged when it is being exported overseas,” he said when met by reporters after witnessing the signing of the Sale and Purchase Agreement between Petronas Chemicals Marketing (Labuan) Ltd (PCML) and Sarawak Petchem Sdn Bhd at the State Legislative Assembly (DUN) complex yesterday.
He pointed out that the tax would not be imposed within the state.
Starting Jan 1 next year, the sales tax will be levied on crude oil, natural gas, LNG, chemical-based fertilisers and gas-to-liquid products once they are headed for the export market.
