Is the 20 per cent oil royalty based on net profit or gross revenue?

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The Federal Government Plans a 20 Per Cent Oil Royalty Based on Net Profit

The federal government has announced plans to distribute a 20 per cent royalty on oil resources. This royalty will be calculated based on net profit, not gross revenue. This contrasts with the current system where all oil-producing states receive a 5 per cent royalty from gross revenue.
Stance on Royalty Calculation

Members of Sarawak's ruling coalition, Gabungan Parti Sarawak (GPS), have sought clarification from the state's Pakatan Harapan chief, Chong Chieng Jen, regarding his position on the proposed royalty calculation. GPS parliamentary whip Datuk Seri Fadillah Yusof stated that if Chong supports the net profit calculation, it would constitute a betrayal of Sarawak's people.
Election Promise Discrepancy

Fadillah highlighted that the expectation among Sarawak's populace is for the Pakatan Harapan (PH) government to fulfil its manifesto promise of a 20 per cent royalty based on gross revenue. He questioned whether Chong had shifted his stance or remained consistent in demanding the higher royalty from total revenue.
Current Royalty System

Under the existing framework, all states that produce oil currently receive a 5 per cent royalty. This royalty is calculated from the gross revenue generated by the oil resources. The proposed change to a net profit basis represents a significant departure from this established practice.

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Is the 20 per cent oil royalty based on net profit or gross revenue?

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