Azmin Warns That 5 Per Cent Tax on Petroleum Products Can Affect the Market

Malaysia’s Economic Affairs Minister Datuk Seri Azmin Ali stated that the action taken by the Sarawak government to implement 5% sales tax on petroleum products created in the state would not only affect the Petronas, it would also have an impact on the market.
He stated that the matter needs to be discussed with immediate attention as an increase in costs because of additional taxes might lead to lesser demands. Also, the price of the petroleum products would be even more than other regions.

However, Azmin stated that they respect the suggestion that has been put forward and he is taking a forward stand to talk on the issue with the Sarawak government. Azmin made this statement after making a phone call on Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg in his office at the Sarawak state legislative assembly building.
Azmin pointed that any spike in tax might affect the production of petroleum products in Sarawak. Abang Johari, a Sarawak Finance Minister during placing forward the State Budget 2019 declared that the state government would implement 5% sales tax on petroleum products starting next year.
In another development, Malaysia’s Economic Affairs Minister stated that the federal government would try to certify that the Sarawak and Sabah don’t miss the infrastructure development projects. He even added that the state and the federal government have acknowledged assisting each other in the field of infrastructure development, like utility projects or the up gradation of schools in both states.
Additionally, he mentioned that the federal government had agreed to go ahead with the Pan Borneo Highway project in both states. These projects would help to provide many economic opportunities.

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