KUCHING: Sarawak DAP hopes that a motion at the coming State Legislative Assembly (DUN) sitting will lead to a court decision on the legality of the state government’s move to impose the five per cent state sales tax on petroleum products.

Pending assemblywoman Violet Yong told reporters today that she had submitted the motion to urge the state government to take legal action against Petroliam Nasional Bhd (Petronas) over the non-payment of the tax which came into effect this year.

“In the State Budget 2019, the estimated revenue has taken into account the collection of sales tax over petroleum products extracted from Sarawak by Petronas. Petronas has hitherto not paid the sales tax to the Sarawak state government,” she said.

Yong asserted that the non-payment of the five per cent sales tax by Petronas had a significant adverse impact on the state’s balance sheet, adding that the legality of the Sarawak government imposing the tax ‘is a matter of legal interpretation of the Federal Constitution’.

As such, she said the state legislature should resolve that the Sarawak government refer the matter to the Court of Law for speedy adjudication on the legitimacy of the Sarawak government’s claim on the sales tax.

Yong said Gabungan Parti Sarawak (GPS) had been “claiming so loudly through PBB (Parti Pesaka Bumiputera Bersatu) leaders that if Petronas does not pay the sales tax by Oct 31, the Sarawak government will take legal action against Petronas”.

As such, she said if her motion was granted by the Speaker to be debated and passed in DUN during the sitting which begins next Monday, the Sarawak government could go ahead with filing the suit against Petronas.

“If Sarawak is claiming its rights on the sales tax, do not be just lip service. I hope my motion will be approved and debated, but this is up to the Speaker,” she said, revealing that the motion was faxed to the DUN Secretariat at 10.37am and hand-delivered to the Secretary by noon last Friday.

Meanwhile, Sarawak DAP chairman Chong Chieng Jen, who is Kota Sentosa assemblyman, said Yong has the full support of the state DAP committee.

He said the Sarawak government should be frank to Sarawakians whether it had a legal right in claiming the sales tax.

He said Sarawakians surrendered the rights in Parliament way back in 1974 when a former Sarawakian MP tabled a Bill to enact the Petroleum Development Act (PDA).

“The Sarawak government has to be frank, especially when it comes to Budget matters. Whether the Sarawak government has a right to claim (the sales tax), this is a matter which can only be settled in court.”

Chong added: “…any knock down of this (Yong’s) motion is an admission that they (GPS) have no basis of the claim.”

In Budget 2019 tabled on Nov 5 last year, Chief Minister Datuk Patinggi Abang Johari Tun Openg said the five per cent sales tax on petroleum products would generate an estimated revenue of RM3.897 billion this year.