High Court Judge Azahari Kamal Ramli says the power of the states to make laws on the matter derives from Article 95B (3) of the xonstitution. FMTNews Petronas PetroleumProduct
National oil company Petronas had claimed that some parts of Sarawak’s Sales Tax Ordinance 1998 were unconstitutional.
Petronas had claimed that some parts of the state’s Sales Tax Ordinance 1998, which require the national oil company to pay the 5% sales tax on petroleum products to Sarawak, were unconstitutional. However, Azahari said the power of the state to make laws for imposing the sales tax derives from Article 95B of the constitution.He said the notices of assessment were also issued legally by the comptroller of the state sales tax.
Sarawak legal counsel JC Fong said he hoped Petronas would accept the decision instead of appealing against it.
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