Malaysian state-owned energy giant Petronas is expected to pay the resource-rich state of Sabah RM1.25 billion in sales tax next year, state media said.[KUALA LUMPUR] Malaysian state-owned energy giant Petronas is expected to pay the resource-rich state of Sabah RM1.25 billion in sales tax next year, state media said.
Sabah Deputy Chief Minister Jeffrey Kitingan said Prime Minister Muhyiddin Yassin had agreed for the state to collect the 5 per cent tax from Petronas next year, Bernama news agency said late on Saturday. Sabah and neighbouring Sarawak state in Borneo island hold much of the nation's oil and gas reserves, and have long asked for more payments from Petronas, the sole manager of the country's energy reserves.
Petronas suffered its first loss in nearly five years during the second quarter due to a coronavirus-driven slump in demand and oil prices. The payments could further hurt its finances. The firm had fought Sarawak state's demand for sales tax in court, but in September paid the state RM2.96 billion in taxes, as part of an unexpected settlement deal.