KUCHING: Sarawak has approved the introduction of state sales tax (SST) on the export of ferroalloys and polysilicon as part of efforts to diversify revenue sources, says Datuk Amar Douglas Uggah.
The Deputy Premier said the tax would be imposed at the rate of 1.5% effective Sept 1 this year.
“This is a fair and reasonable rate for the affected companies as they enjoy tax incentives from the Federal Government and favourable power rates from the state.
“The revenue generated from this source will give us fiscal flexibility in enhancing our socioeconomic development efforts which include, among others, implementing clean and renewable energy initiatives,” he said in his winding-up speech at the Sarawak Legislative Assembly sitting here on Wednesday (May 15).
Uggah also said Sarawak collected RM14mil from SST on the export of selected timber products last year.
He said that for this year, the state was projected to collect RM33mil from the tax, which was imposed effective June 1 last year.
“Moving forward, the Sarawak government will continue to explore new opportunities to enhance and diversify our revenue sources.
“This is imperative as we continue to pursue our development agenda so that no one will eventually be left behind,” he said.
In addition, Uggah said Sarawak’s revenue was projected to be RM12.749bil this year.
He said RM4.798bil or 38% of the projected revenue had been collected as of March 31.
“Based on the performance thus far, we are confident we can achieve the targeted revenue projection for this year, barring any unfavourable circumstances at the global geopolitical level which could adversely affect oil and gas markets,” he added.
