Since the tax was implemented last year, the Sabah government has earned RM1.25 billion in sales tax on petroleum products from Petroliam Nasional Bhd (Petronas).
Datuk Seri Hajiji Noor, the Chief Minister, said this included RM177.88 million for 2020 and RM1.07 billion up to August this year.
The sales tax on petroleum goods was included in the state’s RM3.83 billion revenue collection as of Aug 31, he said, noting that the state’s revenue collection exceeded the period’s objective by 120 percent.
Hajiji noted that payment of petroleum product sales tax was included in the agreement reached during his first meeting with former Prime Minister Tan Sri Muhyiddin Yassin following the former’s oath of office as chief minister following Gabungan Rakyat Sabah’s (GRS) takeover of the state administration a year ago.
“Among the agreements reached was for Petronas to immediately begin paying sales tax on petroleum products,” he said Wednesday at a ceremony marking the administration’s first year in power at the Sabah International Convention Centre.
Datuk Seri Bung Moktar Radin, Datuk Dr Jeffrey Kitingan, and Datuk Dr Joachim Gunsalam were also present.
Apart from the petroleum product sales tax, Hajiji stated that the state government aims to collect RM100 million in dividend payments from state statutory bodies and government-linked enterprises this year to bolster its finances.
As of this month, RM25.72 million in dividends has been received, and Hajiji stated that the RM100 million target is projected to be met by year’s end.
Hajiji added that the Sabah government would also explore the state’s natural resource reserves alongside sustainable management through a number of planned initiatives, including development and revenue generation through carbon credit trading, revenue generation through mineral resources, revitalising economic activities, and promoting money circulation through household spending.
The chief minister also launched the Sabah Welfare Foundation at the ceremony, which will assist the state government in advancing the welfare agenda while also serving as an institution to foster collaboration between the government and non-governmental organisations (NGOs), corporates, and private organisations willing to raise funds and donate to those in need.
Hajiji stated that the foundation would be properly administered by trained social workers to ensure that aid is channelled transparently and reaches the intended beneficiaries.
Published by Zack Baharum