KOTA KINABALU: Sabah has recorded a higher-than-expected sales tax on petroleum products of RM1.79bil as of Monday (Nov 28).
State Finance Minister (II) Datuk Seri Masidi Manjun (pic) said the state initially projected to earn RM1.1bil based on the international price of US$53 (about RM239) per barrel, but this was readjusted based on the ever-changing price of fuel globally.
He said Sabah was also expanding its oil and gas revenue base by gradually including urea and ammonia-based products.
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He said this was part of the state government’s initiative to ensure that Sabah gets to enjoy returns from oil and gas, while noting that higher fuel prices do not necessarily mean more income or benefit to the state.
He explained that higher global fuel prices would also lead to increases in the cost of living.
He said that though Sabah could earn more sales tax with increasing fuel prices, it still had to import commodities and materials, and the cost of these would go up correspondingly.
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Therefore, he added, expanding the revenue base from oil and gas products was vital to offset cost increases in other areas.
He was responding to questions during the state legislative assembly sitting here on Tuesday (Nov 29).
