NATIONAL oil and gas company Petroliam Nasional Berhad (Petronas) is urged to pay up the five percent sales tax on petroleum export.
Deputy Chief Minister and Minister of International Trade and Industry, Industrial Terminal and Entrepreneur Development Datuk Amar Awang Tengah Ali Hasan (GPS-Bukit Sari) said that Petronas must adhere to state laws.
“Petronas complies with the law of every other country where they are operating, among them are Canada and Brazil. In Canada, they comply with Canadian laws and in Brazil, they comply with Brazilian laws.
“Why is it that when it comes to their operations in Sarawak, they refuse to comply with Sarawak laws? Petronas ought to respect our Sarawak Sales Tax Law. When in Rome, do as the Romans do. If you are in Sarawak, follow Sarawak laws,” he said during his ministerial winding-up speech at the State Legislative Assembly (DUN) here yesterday.
“It is public knowledge that Petronas has extracted hundreds of billions of ringgit worth of our petro-carbon resources from Sarawak territory and what we received is a mere five percent in royalty payments.
“They cannot deny that its success is built upon the oil and gas resources from Sarawak and Sabah, especially during its formative years.
“They owe (their success) to Sarawak and Sabah and should return the favour by paying up the sales tax without any hassle. This is in line with the Federal Constitution and state laws,” he added.
Awang Tengah said it was strange that a Malaysian government-linked company (GLC) had chosen to ignore state laws while foreign petroleum companies operating in Sarawak, such as Shell, Murphy and PT Pertamina, had all complied.
“Petronas’ refusal to comply is tantamount to challenging the rights of Sarawak as enshrined under the Federal and State Constitutions.
“We shall let the law take its course. For the same reason, we stand solidly behind the Chief Minister with regard to the issues pertaining to the rights and autonomy of Sarawak under Malaysia Agreement 1963 (MA63).
“We are only asking for what is rightfully ours. Nothing more, nothing less,” he added.
