Does MA63 give Sarawak the right to impose export sales tax?

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MA63 Grants Sarawak the Authority to Levy Export Sales Tax

The Malaysia Agreement 1963 (MA63), alongside recommendations from the Inter-Government Committee Report, empowers Sarawak's state legislative assembly to impose sales tax, including on the export of petroleum products. This right is enshrined within the Federal Constitution, and the state has the legal standing to enforce such taxation.
State Legislative Assembly's Constitutional Right to Impose Tax

Datuk Sharifiah Hasidah Syeed Aman Ghazali affirmed that Sarawak's state legislative assembly possesses the explicit right, under the Federal Constitution, to enact sales tax legislation. This authority stems directly from the provisions of the Malaysia Agreement 1963 and the subsequent recommendations detailed in the Inter-Government Committee Report. These foundational documents provide the legal framework for Sarawak to exercise its fiscal autonomy.
Inalienable Right to Tax and Annex Laws

The assertion was made that no entity can revoke Sarawak's inherent rights granted under MA63 to implement taxation and incorporate laws. These rights are considered agreed upon and were formally recommended through the Inter-Government Committee Report, solidifying the state's capacity to levy taxes and legislate accordingly. This underscores the protected status of Sarawak's fiscal powers.
High Court Ruling Supports State's Imposition of Tax

A High Court decision has upheld the state's authority to impose sales tax on the export of petroleum products. The ruling indicated that the Comptroller of the State Sales Tax acted within the scope of the State Sales Tax Ordinance when levying the tax on Petroliam Nasional Bhd (Petronas). Notices of assessment were deemed legally issued by the comptroller, supporting the state's position in this matter.

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Does MA63 give Sarawak the right to impose export sales tax?

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