SABAH Chief Minister Mohd Shafie Apdal will look into Sarawak’s move to impose a 5% sales tax on petroleum products mined and produced in the state, as a way to raise funds for state development.

Sarawak will start collecting the tax on January 1 next year.

“We will look into that… definitely, if there is a way for us to increase our revenue and help us develop Sabah, as demanded by Sabahans,” said Shafie.

“We are mindful of such things, and being the largest producer of oil and gas in the country, we are looking into these aspects to realise such an initiative.”

Sarawak will impose the tax on crude oil, natural gas, liquefied natural gas, chemical-based fertilisers and gas-to-liquid products, as announced by Chief Minister Abang Johari Openg during a state assembly sitting.

“(It) is our right, as enshrined in the federal constitution. (The state) does not have much choice but to be self-determining in its development efforts, to undertake the massive work ahead of us,” said Abang Johari earlier this week.

He also said the state can no longer rely on the federal government for development funds. – November 9, 2018.