Sarawak cannot impose sales tax on petroleum products, says expert

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Constitutional law expert Shad Saleem Faruqi says the state can only impose sales tax on items in the state list of the Federal Constitution. FMTNews

Shad Saleem Faruqi says matters concerning petroleum products are in federal hands.

Constitutional law expert Shad Saleem Faruqi said petroleum products are stated in the federal list under the Ninth Schedule of the constitution. “Petronas has argued that Sarawak can acquire the power to impose sales tax but only over matters that are stated in the state list,” Shad Saleem said in a lecture on “The Spirit of the Malaysia Agreement 1963 in our Constitution” here today.

He said the state could impose sales tax only on items in the state list such as escheat, treasure trove, agriculture, forests, markets and fairs, theatres, cinemas, places of amusement, turtles and riverine fishing.

 

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Petroleum products are in the federal list. Therefore, any regulation or dealing on petroleum products is also in federal hands. In 1963, petroleum and gas were not significant issues. I think the lawyers from Sabah and Sarawak back then had let the people down.

Its Sarawaks right you helmet.

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