Sales tax on petroleum products higher than expected


KOTA KINABALU: Sabah’s sales tax on petroleum products has been recorded to be higher than expected at RM1.79bil as of Nov 28.

State Finance Minister II Datuk Seri Masidi Manjun (pic) said the state had expected to get around RM1.1bil based on the international price of US$53 (RM238.90) per barrel, but the calculation formula was readjusted based on the ever-changing price of fuel globally.

He added Sabah was also gradually expanding its oil and gas revenue bases by including urea and ammonia-based products.

“This is part of the government’s initiatives to ensure that Sabah gets to enjoy the returns from oil and gas,” he pointed out, while noting that the higher prices of fuel do not necessarily mean more income or more benefit for the state.

In explaining this, Masidi said with higher fuel prices globally, the cost of living for the people would also increase indirectly with the rise of commodity and other prices.

He was responding to questions fielded during the state legislative assembly sitting here yesterday.

Masidi said although Sabah could collect more sales tax with the rising fuel price, there were still many commodities and materials that the state has to import and that would contribute to the cost of living.

So, the expansion of Sabah’s revenue based on oil and gas products was vital to offset the higher cost of other materials, added the minister.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Nation

Urgent Water Supply Scheme will help overcome water woes in KK, says Shahelmey
Shafee says will miss Sri Ram, conveys condolences to his family
PM to make official visit to Singapore on Jan 30
Hajiji to look into plight of Murut villagers after logging of ancestral land
Reveal all on 'tallest flagpole' project, MP urges Sarawak govt
PM Anwar conveys condolences to Gopal Sri Ram's family
Leaders must never forget the people and their sorrows, says Anwar
'He was a national treasure': Sri Ram's passing mourned by legal fraternity
Due process was followed in sacking and suspension of leaders, says Umno info chief
Umno elections must go on within stipulated time, says Ahmad Maslan

Others Also Read