By Second Minister of Finance, Sabah, Datuk Seri Panglima Masidi Manjun
KOTA KINABALU: I refer to the recent statement of Hibiscus Petroleum Berhad in relation to the refusal to make payment of the State Sales Tax [SST] by its wholly owned subsidiaries, Repsol Oil & Gas Ltd [REPSOL] and SEA Hibiscus Sdn Bhd [SEAH].
The State Government of Sabah remains fully committed in pursuing all its constitutional and legislative rights to recover the SST due for the sale of petroleum products from both REPSOL and SEAH in accordance with the State Sales Tax Enactment, 1988.
For the record, both REPSOL and SEAH had applied to the Ministry of Finance and were subsequently issued with the requisite licence as a “taxable person” pursuant to the State Sales Tax Regulations, 1999.
The State Government therefore categorically refutes the alleged basis upon which REPSOL and SEAH are refusing to make payment of the SST and has already demanded for payment of the same.
There had been without prejudice discussions between the representatives of the parties in relation to this issue. However, the matter has now reached an impasse and both companies remain liable and have a continuing obligation to make payment for the outstanding amounts of SST, including penalties.
The State Government of Sabah reserves its rights to take any action deemed necessary within the powers, authority and jurisdiction of the State.l