Chief Minister Abang Johari Openg said the state government will allow the law to take its course if Petronas fails to make the payment.

“Under the State Sales Tax Ordinance 1998, Petronas is legally obligated to pay the 5% sales tax on petroleum products and their failure to do so would tantamount to breach of the law.

“Presently, Petronas has not paid the sales tax on petroleum products to the state while other companies have done so,” he said when tabling the state budget here today.

Earlier, Abang Johari said Sarawak was projected to collect revenue of RM10.067 billion next year.

He said the tax revenue was expected to amount to RM4.631 billion or 46% of the total projected revenue.

The amount includes RM3.491 billion from sales tax, of which RM2.878 billion is from crude oil, liquefied natural gas and other petroleum products.

Abang Johari also said that Gabungan Parti Sarawak (GPS) would maintain its agenda for fairer and more equitable share of revenues from oil and gas produced in the state.

Under the Oil Mining Ordinance 1958 (OMO 1958), he said, the state government had decided to award licences for oil and gas prospecting and production in the onshore areas to Petroleum Sarawak Bhd (Petros).

The onshore mining licences to be issued to Petros would cover the Limbang and Baram areas.

“Petros will evaluate all applicants for licences or mining leases and will be empowered by the state government to facilitate all the oil and gas prospecting and mining activities,” he said.