How much more could Sabah earn from petroleum duties annually?

Question

Accepted Answer

Sabah Could Earn Significantly More from Petroleum Duties Annually

Sabah could see a substantial increase in its annual revenue from petroleum duties, potentially adding at least RM1 billion compared to current collections. This projection is based on the state's constitutional entitlement to collect import and excise duties on petroleum products, a right enshrined in the Tenth Schedule of the Federal Constitution.
Entitlement to Import and Excise Duties on Petroleum Products

Under the Tenth Schedule of the Federal Constitution, Sabah possesses the legal right to collect import and excise duties specifically on petroleum products. This entitlement, if fully realised, could generate a minimum of RM1 billion each year for the state.
Current Collections Versus Potential Revenue

Currently, Sabah collects a significantly smaller amount, reported as RM120 million annually, from these petroleum duties. The disparity highlights a substantial gap between the state's constitutional rights and its actual revenue generation from this specific source.
Additional Revenue from Crude Oil Export Duties

Beyond duties on finished petroleum products, Sabah also holds the right to impose export duties on crude oil. This right, which can be levied in lieu of oil royalties up to a maximum of 10 per cent ad valorem, is estimated to be capable of generating approximately RM3.6 billion per year. This further underscores the considerable untapped revenue potential from the state's natural resources.

Reading history

Hide →

This history is cleared when the page is closed.

How much more could Sabah earn from petroleum duties annually?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends