Sarawak takes Petronas to court over non-payment of 5% sales tax


  • Nation
  • Thursday, 21 Nov 2019

KUCHING: Sarawak has taken Petronas to court for not paying the 5% state sales tax on petroleum products.

In a statement, state assistant minister Datuk Sharifah Hasidah Sayeed Aman Ghazali said a writ of summons and statement of claim were filed against Petronas at the Kuching High Court on Thursday (Nov 21).

The suit was filed by the state sales tax controller and state government to recover the sums due from the national oil corporation.

"As has been mentioned several times before this, Petronas has not paid the state sales tax for petroleum products under the State Sales Tax Ordinance 1998, which is due to the state.

"As a result, the state government is left with no choice but to commence legal action for the recovery of the unpaid taxes due," Sharifah Hasidah said.

The 5% tax on petroleum products for export was approved by the Sarawak Legislative Assembly last November and came into effect on Jan 1 this year.

On Nov 4, Chief Minister Datuk Patinggi Abang Johari Tun Openg said in his budget speech that the state government had issued a notice of assessment to Petronas to pay the tax.

He said that Petronas was legally obligated to pay the state sales tax and that legal action would be taken if it did not comply.


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