Sarawak introduces SST on ferroalloys, polysilicon exports

SARAWAK has approved the implementation of a state sales tax (SST) on the export of ferroalloys and polysilicon. Its Deputy Premier Datuk Amar Douglas Uggah announced that the tax would be levied at a rate of 1.5%, effective from Sept 1, 2024.

“This is a fair and reasonable rate for the affected companies as they enjoy tax incentives from the Federal Government and favourable power rates from the state.

“The revenue generated from this source will give us fiscal flexibility in enhancing our socioeconomic development efforts which include, among others, implementing clean and renewable energy initiatives,” he said.

Speaking at the Sarawak Legislative Assembly sitting, Uggah disclosed that Sarawak had collected RM14 mil from SST on the export of selected timber products last year. He further projected that the state would collect RM33 mil from the tax for the current year, following its imposition effective from June 1, 2023.

“Moving forward, the Sarawak government will continue to explore new opportunities to enhance and diversify our revenue sources. This is imperative as we continue to pursue our development agenda so that no one will eventually be left behind,” he added.

Moreover, Uggah revealed that Sarawak’s revenue projection for the current year stands at RM12.749 bil, with RM4.798 bil, equivalent to 38% of the projected revenue, already collected as of March 31.

“Based on the performance thus far, we are confident we can achieve the targeted revenue projection for this year, barring any unfavourable circumstances at the global geopolitical level which could adversely affect oil and gas markets,” he further added. – May 15, 2024

Main photo credit: Borneo Post Online

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