SARAWAK Chief Minister Abang Johari Openg hinted the sales tax might be raised on the state’s petroleum products for added revenue.

He said the extra money could be used to fund building of roads, airports, bridges and rural development projects.

“If there is not enough money I (would) have to squeeze the oil and gas again,” the chief minister said.

He was alluding to the 5% sales tax the state had imposed at the year’s start to offset the refusal of the federal government to increase the oil royalty tax from 5% to 20%.

The state is also suffering from severe cutbacks on funding for the state’s various projects, including the repair of thousands of dilapidated schools.

The sales tax on petroleum products mined in the state is expected to rake in RM4 billion for the state this year.

Abang Johari said the state in the next three to six years would be building roads in two new economic development areas under the Highland Development Agency and the Upper Rajang Development Agency to accelerate growth in rural areas.

He said the state government also needed money for the construction of STOL (short take off and landing) airports in Sungai Tunoh in Kapit, Spaoh in Betong, and in Lawas.

Like the Tanjung Manis airport in Mukah, the three airports would be built with state money and later managed by the state, he said.

The Tanjung Manis airport, which opened in 2001, is to facilitate management of logistics for investors in the Tanjung Manis Economic Growth Area, formerly known as Tanjung Manis halal hub.

Due to its proximity to Sarikei, the airport also serves the Sarikei Division.

In closing the two-day seminar on road technology and technical manpower in Sarawak in Kuching this afternoon, Abang Johari said the three airports the state had planned to construct would not only provide air connections to remote rural areas but also a means to transport farm produces out of these areas to the markets in the major urban centres.

He said despite criticism from the opposition, the state will proceed with its plan to construct a second trunk road from Kuching to Sibu.

All this, he said, needed money.

Imposition of the sales tax is Sarawak’s right under Article 95C and the Tenth Schedule of the federal constitution. – March 27, 2019.