Sabah to terminate work permits of two oil and gas companies if arrears remain unpaid: Masidi

State Finance Minister II Datuk Seri Masidi Manjun says the termination will take effect on October 1.

KOTA KINABALU: The State Government will terminate the work permits of two oil and gas companies that fail to pay their State Sales Tax on petroleum products due to the State Government.

State Finance Minister II Datuk Seri Masidi Manjun said the termination would take effect on October 1.

“The State Government has issued letters to the companies concerned (to inform them on this), should they still fail to pay,”

He said this during a question-and-answer session at the State Legislative Assembly (DUN) sitting, here, Tuesday.

He was responding to a supplementary question by Nominated Assemblyman Datuk Yong Teck Lee if action would be taken on companies who have yet to pay their taxes, namely SEA Hibiscus Sdn Bhd (SEAH) and Repsol Oil and Gas Ltd (Repsol).

Masidi said an assessment notice was issued to the companies on June 21 to claim arrears and a penalty worth RM97.3 million, which is broken down to RMM65.6 million in sales tax and RM 31.66 million in penalty.

“It must be settled within 30 days from the date of the letter,” he said, adding that civil action would be taken should they fail to do so.