According to Sabah Finance Minister II Datuk Seri Datuk Seri Masidi Manjun, two oil companies, SEA Hibiscus Sdn Bhd and Repsol Oil & Gas Ltd, have settled their state sales tax (SST).
SEA Hibiscus has settled SST arrears totalling RM70.05 million while Repsol has cleared its RM9.36 million arrears, leaving them with no further amount outstanding, said Datuk Seri Masidi.
“Both companies have now started making payments on their current taxes,” Masidi answered in response to an oral question from Datuk Seri Yong Teck Lee, who wanted to know the outstanding SST amount owed by SEA Hibiscus and Repsol as of October this year.
In his reply to a supplementary question from Assaffal P. Alian (Warisan-Tungku) who wished to know the reason for the two companies’ delay in paying SST, the state finance minister II said there was a legal issue being disputed by the companies, with the Sabah government taking an opposite view.
The state government informed them that it would not hesitate to apply the full legal and constitutional powers available to the state to enforce its SST demand against the companies, he said.
“Finally, the companies decided to settle the issue amicably and comply with the demands made by the state government,” he added.
“I have already considered them (as) our partners to develop Sabah as a result of their agreement to pay the sales tax,“ he concluded.