By KUCHING: The total revenue generated through the implementation of the State Sales Tax (SST) on petroleum products is over and above the amount that would have been obtained from 20 per cent of oil and gas royalty.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the state government was able to obtain the additional income from the imposed tax despite not getting its wish for 20 per cent oil and gas royalty from the federal government.
“Pehin Sri Adenan Satem had mentioned previously that Sarawak wants 20 per cent oil and gas royalty. The opposition too had (during GE14) promised that.
“When we implemented SST, the were able to obtain more than the amount that would have been generated from oil and gas.
“It took three years, we obtained RM8.54 billion,” he said during his address at the Parti Pesaka Bumiputera Bersatu (PBB) Triennial General Meeting (TGM) at Borneo Convention Centre Kuching (BCCK) today (June 18).
Abang Johari said the state government had to refer to its constitution when mooting the implementation of SST.
“When Adenan passed, Abang Jo stepped in (to pursue the additional income, we had to go to the court,” he said.
The premier said Sarawak expects to gain more from SST given the high oil prices worldwide at present.
“The world oil price has climbed to between USD115 to USD120 per barrel. It has spiked by an amount of USD50 – I only predicted that it only would go as high as USD70.
“But for me, that isn’t enough, Sarawak must be more resilient in terms of its finances. We have brainstormed to get more income,” he said.
Abang Johari said this culminated in the amendment of the State Land Code. Now the airspace above the land in Sarawak belongs to the state.
“This includes spectrum whereby those wanting to use it now, has to seek permission from Sarawak. This will give massive returns to the state,” he said.
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