KUCHING: Sarawak is standing firm on its decision to impose a 5% sales tax on petroleum products in the state starting this year. Chief Minister Datuk Patinggi Abang Johari said the sales tax was discussed in a Dec 17 meeting of the special cabinet committee on the Malaysia Agreement 1963 (MA63). Abang Johari added that the federal government could review the 38% tax rate imposed under the Petroleum Income Tax Act if it felt Sarawak's 5% sales tax would make the industry uncompetitive. "Why should we sacrifice ourselves and our right to impose sales tax? Last November, Abang Johari announced the 5% sales tax on petroleum products when tabling the state budget in the Sarawak Legislative Assembly.

Source: The Star January 03, 2019 05:37 UTC