Notices of assessment for state sales tax on petroleum products are invalid, says Petronas lawyer

The Petronas counsel said the state sales tax could only be imposed on matters in the state list under the Federal Constitution, while petroleum was a matter on the federal list.

"What we have argued is that the power to impose sales tax is very narrow and confined by certain restrictions in the Constitution. The national oil corporation is seeking, among others, a declaration of certain sections of the Ordinance as ultra vires to the Federal Constitution and null and void, and also an order of certiorari that the notices dated Aug 28,2019, Oct 7,2019, and Nov 13,2019, issued to Petronas be quashed.

In addition, he said the State Sales Tax Ordinance covered more than just sales tax and arguably included excise, import and export duties.

Petronas is a Null and Void operation in Sarawak !!! It breach the constitution and MA63 treaty agreement !!!

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Petronas claims Sarawak sales tax law 'unconstitutional'Its lawyer Malik Imtiaz Sarwar says the power to impose the state sales tax is only applicable to matters that are in the state list and petroleum is under the federal list. FMTNews Petronas
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