Sabah seeks clearer tax law, more local role in oil and gas industry
Finance Minister Datuk Seri Masidi Manjun said the amendments would be tabled during the two-day state assembly sitting next week, which is also meant for the tabling of the supplementary budget.
The amendments aim to remove ambiguity in tax collection, streamline the appeal process, and improve enforcement.
"We want the provision to be crystal clear, so there's no ambiguity.
"We also want to ensure that taxpayers have ample opportunity and room to appeal if they are not satisfied with the tax.
"We also want to improve governance and, of course, implementation by our tax officers, so that everyone's role is clearly defined and leaves no room for doubt," he told the media during the SMJ Energy Networking dinner here.
When asked whether the state was pursuing increased oil and gas royalties to boost revenue, Masidi said the matter was still on the table.
However, he said the Sabah government is also prioritising long-term economic gains by increasing local participation in the oil and gas sector.
"If it's just about royalties, the money goes straight to the government.
"But if we focus on building a vibrant oil and gas industry in Sabah, many local companies will benefit, and jobs will be created.
"When SMJ Energy facilitates their entry into the market, the number of companies actively pursuing business opportunities continues to grow," he said, adding that oil and gas development is also planned for Sabah's east coast to further stimulate the economy.
Sabah currently receives a 5 per cent royalty from Petronas under a 1976 agreement.
However, the state has long maintained that the amount is insufficient and has called for it to be increased to 20 per cent.
SMJ Energy Sdn Bhd, which is owned by the Sabah government, is tasked with increasing revenue sharing, securing greater participation, and expanding the state's influence in oil and gas production and its value chain.
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