Datuk Abdul Karim Rahman Hamzah

KUCHING: The decision by Petroliam Nasional Berhad (Petronas) to withdraw its appeal against the Kuching High Court’s ruling that Sarawak is entitled to collect sales tax on petroleum products shows that Petronas recognises the state’s rights.

Parti Pesaka Bumiputera Bersatu (PBB) vice president Datuk Abdul Karim Rahman Hamzah said, “What is more important is also the preparedness of Petronas to abide by our state laws,” he said in a Facebook post today.

Abdul Karim, who is also the Minister of Tourism, Arts, Culture, Youth and Sports, said Petronas’decision was also a positive step and signified a better working relationship and understanding between the Sarawak government and the national oil company.

“We are all grateful because this is a positive and good development for all parties to move forward.

“This also tells that our state government will continue to defend the rights of Sarawak and prioritise the interests of the state in every action that is planned and implemented,” he said.

Bernama on Aug 3 reported that Petronas withdrew its appeal against the Kuching High Court’s ruling that Sarawak was entitled to collect sales tax on petroleum products.

It is also reported that at the same time, Sarawak government also withdrew its cross-appeal over jurisdiction issue of the High Court on state sales tax (SST).