KUCHING: Sarawak People’s Aspiration Party (Aspirasi) is calling for an increase of the State Sales Tax (SST) from five percent to 30 percent.
In making this call, Aspirasi president Lina Soo said instead of the RM3 billion that Sarawak managed to obtain with the five percent SST, an increase to 30 percent would yield about RM20 billion to the state’s income.
“Right now, we are getting five percent, which is RM3 billion in SST. Say the oil price now around 50 dollars a barrel, of course if it is 100 dollars, we get double that amount.
“The federal government is imposing 38 percent petroleum tax to Petronas since 1970s, every year they (Petronas) are giving RM45 billion to Putrajaya.
“We only started in 2019 to impose five percent SST; we can increase it to 30 percent, this is an administrative right,” she said during an interview with a local portal recently.
Soo said even if Sarawak increases its SST to 30 percent, it is still less than the 38 percent tax under Pita (Petroleum Income Tax) given by Petronas to the federal government.
She said, with the funds obtained through the increased SST, it will allow every Sarawakian adults to be given a basic monthly income of RM500.
“It is our oil, why are they giving (the money) to the federal government. To execute this basic income programme, we need RM10 billion a year, with the RM20 billion, Sarawak has a remaining of RM10 billion which can be used for a sovereign wealth fund.
“This can be used for our future generations and we can grow (the money). When our oil runs out, the funds can still be used,” she said.
Soo said this is doable and it can be done immediately with the approval of the Sarawak Legislative Assembly (DUN).
She said the proposal, which is part of Aspirasi’s election manifesto will be implemented if voted into power.
