KUCHING: The federal government still owes Sarawak, among others, the five percent oil and gas royalty payment along with the 38 per cent tax collected under the Petroleum (Income Tax) Act 1967 (PITA).
Deputy Premier Datuk Seri Dr Sim Kui Hian said Putrajaya had also yet to repay the state the 26 per cent tax refund arrears collected under the Corporate Income Tax Act 1967, as well as payment from PETRONAS’ net profit.
On the request to have a state representative sit on the board of directors of the Inland Revenue Board (IRB), he said the move was necessary as it would facilitate the disbursement of the appropriate amount of the special grant to Sarawak under the Malaysia Agreement 1963 (MA63).
A news portal recently quoted Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg saying Sarawak had submitted the name of its candidate to sit on the IRB to ensure the state received the right amount of the annual special grant under Article 112D of the Federal Constitution.
“We had in the past insisted on a state representative sit on PETRONAS’ board of directors to facilitate the repayment of five percent oil and gas royalty and five percent Sarawak Sales Tax (SST),” Dr Sim said today (July 12) in a Facebook posting.
For the collection of the SST the state government had to amend the Sarawak Constitution.
