Datuk Seri Rohani Abdul Karim

KUCHING: The withdrawal of Petronas’ appeal against the Kuching High Court ruling that Sarawak is entitled to collect sales tax on petroleum products, is a win-win situation for both.

Batang Lupar MP Datuk Seri Rohani Abdul Karim described the decision as a ‘big present’ also for the Sarawak government.

“We want to thank Prime Minister Tan Sri Muhyiddin Yassin and those involved for allowing the matter to be discussed in a good manner,” she told Sarawak Public Communications Unit (Ukas) after the Parliament sitting on Monday (Aug 10).

In the meantime, she said, as mentioned by Prime Minister’s Department (Sabah and Sarawak Affairs) Deputy Minister Datuk Hanifah Hajar Taib during the question-and-answer session, Parliament was informed that Petronas had withdrawn the appeal in the Court of Appeal.

“Hanifah also said with the withdrawal of the appeal, Petronas will no longer question Sarawak’s right to impose the sales tax on petroleum products.”

The five per cent SST on petroleum products for export was imposed by the Sarawak government on Jan 1, 2019 under the State Sales Tax Ordinance 1998.

On Aug 3, Petronas decided to withdraw its appeal against the Kuching High Court decision that Sarawak was entitled to collect sales tax on petroleum products.

At the same time, the Sarawak government also withdrew its cross-appeal over jurisdiction issues of the High Court on SST.