Kota Kinabalu: The two Hibiscus Petroleum Bhd-owned oil and gas companies with overdue state sales tax (SST) have yet to settle the outstanding amount with the Sabah Government.
“If they had paid, I would be smiling from ear to ear,” State Second Finance Minister Datuk Seri Masidi Manjun said when asked for a payment update concerning Repsol Oil and Gas Ltd (Repsol) and SEA Hibiscus Sdn Bhd (SEAH).
“You do not see me smiling like that,” he told reporters at a press conference during the Sabah Oil and Gas, Services and Equipment (OGSE) roadshow, here, Thursday.
During the State Assembly sitting in July, Masidi said the State Government will cancel all work permits issued to the two companies if they fail to settle the overdue SST amounting to RM97 million.
At the time, he said notices were given to both firms on June 21, and the amount was supposed to be settled in full within 30 days.
He added that the State Government reserves the right to take legal action against the companies.
Asked if the state government would proceed with revoking work passes to the companies, he said: “We will pursue, within our constitutional and legal power of the State, whatever (avenues are) available. This is being dealt with by the (government) side, with Petronas. We will update the media if and when the need arises,” said Masidi.
Masidi noted that the Government had not encountered such problems with any other oil and gas companies.
“I have forgotten the exact number of companies (paying SST), but if everyone pays, we will collect about RM1.2 billion a year,” he said.
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