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.