Tax on petroleum products will affect market, says Azmin

KUCHING: The Sarawak government’s move to impose a 5% sales tax on petroleum products produced in the state will not only affect Petronas but also the market, said Economic Affairs Minister Mohamed Azmin Ali.

He said the matter should be discussed further as any increase in costs due to the additional tax would lead to lesser demand as it would be more expensive than products from other oil-producing countries.

“Nevertheless we respect the proposal which had been tabled and I am taking a proactive stand to discuss the matter further with the Sarawak government,” Azmin said, adding that Petronas would also give their views on this.

He said this after a courtesy call on Sarawak Chief Minister Abang Johari Openg at the latter’s office at the Sarawak state legislative assembly building here today.

Also present was Works Minister Baru Bian.

Azmin said any increase in tax would have an impact on the production of petroleum products in Sarawak.

Abang Johari, who is also Sarawak finance minister, had announced that the state government would impose a 5% sales tax on petroleum products beginning Jan 2019, when tabling the state budget on Monday.

Source: FMT