Datuk Patinggi Abang Johari Tun Openg

KUCHING: Chief Minister Datuk Patinggi Abang Johari Tun Openg had clarified that the State sales tax (SST) payment worth RM2.95 billion paid by Petronas will all be used for the development of Sarawak.

He said the additional revenue will not only be used for the developing the state’s international schools, but the overall development in the state as well.

“No, that one (news report) was wrong. I was misquoted. What I said was part of the RM3 billion is for development. Of course education is part of it. You don’t use all the RM3 billion for the international schools,” he said in a press conference after the earth-breaking ceremony for the building of the new Sarawak Farmers’ Association (PPNS) at the building site adjacent to the Kota Samarahan Bus Terminal.

Abang Johari was asked to clarify whether the SST payment will only be used for the development of the international schools in Sarawak.

The five percent SST on petroleum products was imposed by the state government starting Jan 1, 2019 under the State Sales Tax Ordinance 1998.

On August 3, it was reported that Petronas withdrew its appeal against the Kuching High Court’s ruling that Sarawak is entitled to collect SST on petroleum products, while the Sarawak government also withdrew its cross-appeal over the issue.

On Sept 17, Petronas and its subsidiaries fully settled their outstanding payment of RM2,956,671,407.36 on petroleum products for 2019 to Sarawak.