Sarawak sues Petronas over unpaid sales tax

Desmond Davidson

After a few weeks of back and forth, the Sarawak government has filed a writ of summons and statement of claims against Petronas over unpaid sales tax. – The Malaysian Insight file pic, November 21, 2019.

THE Sarawak government is seeking legal redress to recover the 5% sales tax on petroleum and petroleum products that national oil firm Petronas is refusing to pay.

The Chief Minister’s Office in a statement today said the comptroller of state sales tax and the state government have filed a writ of summons and statement of claims at the Kuching High Court to claim the unpaid taxes.

The letter was signed by Assistant Minister in the Chief Minister’s office Sharifah Hasidah Syeed Aman Ghazali.

The threat to take Petronas has been lingering since Chief Minister Abang Johari Openg said in the state assembly two weeks ago that he would allow to take its course if payment was not forthcoming.

Sources said Petronas had requested Sarawak not take legal action until they had discussed it last Monday in Putrajaya.

Yesterday, 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.

“Bikin malu saja” (bringing shame),” he said. – November 21, 2019.

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  • The irony is that Petronas is a huge name abroad, showing par excellence in management and business practices but at home, a state government is suing the giant for not paying taxes. This will definitely tarnish the iconic image of the company. All that reputation earned over the years are at risk of being washed down the drain. It will also be an embarrassing situation for the company when engaged in future foreign engagements

    Posted 4 years ago by Kampung Boy · Reply