Malaysia: Petronas confirms Sarawak’s legal action to recover unpaid state sales tax

• Petronas on 25 Nov 19 confirmed that the Comptroller of State Sales Tax Sarawak and the Sarawak government have filed an action against them in Kuching High Court for non-payment of the state’s 5% sales tax on petroleum products.
• On 21 Nov 19, Assistant Minister in the Chief Minister’s Department Sharifah Hasidah Syeed Aman Ghazali said the comptroller and the state government had filed a writ of summons and statement of claims to recover the unpaid state taxes.
• Chief Minister Abang Johari Openg had also told the state legislative assembly two weeks ago when tabling the state budget said he was allowing the issue “to take its course” if the payment was not forthcoming.
• Sarawak, had given Petronas a 31 Oct 19 deadline to make that payment. The deadline passed without the payment. Sources said Petronas had requested Sarawak not take legal action until they had discussed it on 18 Nov 19 in Putrajaya.
• On 20 Nov 19, Deputy Chief Minister Awang Tengah Ali Hassan lambasted Petronas, calling it an embarrassment for not respecting state laws when it does so in foreign countries it is operating in.

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