Mohamed Azmin Ali, the Economic Affairs Minister believes that the move of the Sarawak government to impose 5% sales tax on petroleum products that are produced in the state is going to have an effect on Petronas and the market. He has stated that the matter has to be discussed further since any increase in cost because of additional tax might lead to lesser demand as it is going to be more expensive the products from the other oil producing countries.
Azmin says that they respect the proposal that had been tabled and he is going to take a proactive stand for discussing the matter with Sarawak government. Azmin stated that adding the Petronas is going to give their views on this. He stated this after the courtesy call on Abang Johari Openg, the Sarawak Chief Minister at the office of the latter at Sarawak state legislative assembly building.
Baru Bian, the Work Minister was also present there. According to Azmin an increase in tax is going to have an effect on the petroleum products in Sarawak. Abang Johari, the Sarawak finance minister has announced that the state government is going to impose a 5% sales tax on the petroleum product from January 2019 when he tabled the state budget.