RM3.8 bil from tax to help speed up state’s development: CM
KUCHING: Sarawak will impose a 5-percent sales tax on petroleum products effective January 1, next year.
Chief Minister Datuk Patinggi Abang Johari Tun Openg said the sales tax would be levied on petroleum products, namely crude oil, natural gas, liquefied natural gas, chemical based fertilisers and gas to liquid products.
The revenue from the imposition of sales tax on these petroleum products is estimated to be at a sum of RM3.897 billion in 2019.
“The higher revenue from this new revenue stream together with the other sources of revenue and alternative funding will help to support the state in its development programmes and projects,” he said when tabling the Supply (2019) Bill at the Sarawak Legislative Assembly sitting here, yesterday.
Abang Johari (pic) said the revenue collected from the tax would accelerate the state’s development and set it at par with that of Peninsular Malaysia and narrow the disparity gap between the urban and the rural areas.
“It will also improve the quality of life of the people especially the rural community and achieve Sarawak’s vision to become a high income state by the year 2030,” he added.
He said the state had studied the provisions in both the State and Federal Constitutions and the relevant laws.
“As in Schedule 10, Part V(7) of the Federal Constitution, the state is allowed to impose state sales tax. Under the State Sales Tax Ordinance 1998, the state imposes sales tax on crude palm oil, crude palm kernel oil, lottery tickets and tyres, and this has been a good source of revenue,” he said.
He noted that Sarawak, despite 55 years of independence, was still lagging very far behind in its development as compared to that of Peninsular Malaysia.
“It is saddening indeed to see that the people of Sarawak have not been able to enjoy good quality of life with the necessary infrastructure and amenities, particularly our rural community.
“Sarawak, therefore, has not much choice, but to be self-determining in its development efforts to undertake these massive works ahead of us. Such efforts include putting the state’s infrastructure and basic amenities in place, be it roads and bridges, provision of water and electricity supplies, education, healthcare and many more,” he said.
Abang Johari said the sales tax on petroleum products would enable the state to manage its financial resources effectively and allow the government to speedily implement more rural infrastructure, water and electricity supplies, internet, schools, clinics as well as agricultural and other economic programmes.
“We have a strong commitment to ensure that Sarawakians will no longer be deprived of the basic needs and the opportunity to a better life and a brighter future,” he said.
