KOTA KINABALU: Sabah wants the same benefits that Sarawak received from Petronas, including the sales tax on oil and gas revenue, following the signing of an agreement between Sarawak and the national oil and gas company earlier this month.
Deputy Chief Minister Jeffrey Kitingan said Sabah would ensure that it would receive no less than what Sarawak had obtained under the agreement.
“We don’t ask for less. If it’s more, it would be better,” he told reporters after launching the My Blood2u “Born Hero” blood donation programme and officiating at the Putatan Parti Solidariti Tanah Airku (STAR) office here today.
Jeffrey said this when asked if Sabah would get the same amount received by Sarawak when the negotiations with Petronas were completed.
On Dec 7, Petronas and the Sarawak government signed a commercial settlement agreement on issues involving the state’s sales tax and oil mining laws.
The commercial settlement agreement will create a framework between the national oil company and the state government that will enable Sarawak to be more actively involved in oil and gas activities through Petroleum Sarawak Bhd (Petros).
Sabah Chief Minister Hajiji Noor, when presenting the Sabah Budget 2021, said Prime Minister Muhyiddin Yassin had announced that Petronas would meet with the Sabah government to begin immediate talks for the same purpose.
Meanwhile, Jeffrey, who is also STAR president, said the talks between the Sabah government and Petronas on the matter are expected to be held early next year.
Sabah is expected to collect the sales tax on petroleum products worth RM1.25 billion or 27.9% of the state’s total revenue next year.