Sabah govt settles dispute with two O&G companies owing RM79m in SST
KOTA KINABALU, Dec 1 — The Sabah government has settled outstanding state sale tax (SST) dues owed by two oil-and-gas companies after a court decision.
Second State Finance Minister Datuk Seri Masidi Manjun today said Sea Hibiscus Sdn Bhd has paid RM70.05 million while Repsol Oil and Gas Ltd paid RM9.36 million to settle their dues, for a total of RM79.41 million.
“Repsol and Sea Hibiscus no longer have any outstanding dues.
“Both companies have now started paying their taxes,” he said during Question Time at the Sabah Legislative Assembly here.
He was responding to a question posed by appointed assemblyman Datuk Seri Yong Teck Lee.
Masidi also said there was still arrears from one company tied up in litigation, but that it was more of a legal issue.
“However, the matter is now resolved this morning in court that both parties have agreed to settle the matter,” he said.
In June, Hibiscus Petroleum Bhd announced that it was refusing to pay the SST contesting that it sold its crude oil entitlement from the Kinabalu Oil Field at the Labuan Crude Oil Terminal facility “outside the sovereignty and jurisdiction of the state of Sabah” and hence should not be charged the SST.
The state government had threatened to cancel the work passes of all its workers if the payment was not settled within the deadline.
“The company had argued about the payment first but in the end decided to concede,” said Masidi.
