Sabah to collect sales tax on petroleum products soon

Mohd Shafie(pic), who is also state finance minister, said the Sales Tax (Rates of Tax) Order 2018 on petroleum products, namely crude petroleum oil and natural gas/liquefied gas, was gazetted on Dec 6,2018 and came into force on April 1 this year before being published in the Government Gazette dated April 2.

KOTA KINABALU: The Sabah government is expected to begin collecting 5% sales tax on petroleum products on or before May 28 for the April sales, Chief Minister Datuk Seri Mohd Shafie Apdal said.

Mohd Shafie, who is also state finance minister, said the Sales Tax (Rates of Tax) Order 2018 on petroleum products, namely crude petroleum oil and natural gas/liquefied gas, was gazetted on Dec 6,2018 and came into force on April 1 this year before being published in the Government Gazette dated April 2.

He said the Sabah Finance Ministry, through a letter dated April 1,2020, had notified nine companies that were the beneficial owners of the state’s production sharing contract, including Petronas Carigali Sdn Bhd and Petronas Floating LNG 1 (L) Ltd, of the tax imposition.

Other companies are Sabah Shell Petroleum Co Ltd, Shell Energy Asia Ltd, Hibiscus Petroleum Bhd, Repsol Oil and Gas Malaysia Ltd, PTTEP Sabah Oil Ltd, PT Pertamina Malaysia Eksplorasi Produksi, and ConocoPhilips Sabah Ltd. — Bernama