Hibuscus Petroleum has responded to media reports, with regard to the issue of Sabah State sales tax which the State had threatened if companies don’t pay they could be terminated from operating in the area.
Sabah State Finance Minister II made the claim on 2 companies that have yet to pay SST, Hibiscus indirect wholly-owned subsidiaries SEA Hibiscus Sdn Bhd and Hibiscus Oil & Gas Malaysia Limited (formerly known as REPSOL Oil & Gas Malaysia Limited) has been referred to as the two companies.
In this aspect, the group confirms that in the letter from the office of the Chief Minister of Sabah dated 8th July 2022 received by the Companies, it was stated that the Companies are liable for SST on the basis that the Companies are providing “taxable goods”, namely crude petroleum oils and natural gas from the State of Sabah.
- However, Hibuscis said it had on 11th July 2022, responded to the Letter to clarify that pursuant to the Petroleum Development Act 1974, they cannot and do not provide such “taxable goods” from the State of Sabah and are therefore not legally liable for SST. It further added that this is the position that has been affirmed by the companies’ tax legal advisors.
- It also said representatives from the companies have been in ongoing engagement with Sabah State officials with the objective of clarifying the issue of the applicability of SST to the Companies.
- While the companies remain committed to resolving this matter, it also said that they will take appropriate action to safeguard their legal rights and interests accordingly where they are constrained to do so.
