Sabah threatens action against oil and gas companies refusing to pay sales tax

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KOTA KINABALU: The State government has issued a stern warning to two wholly owned subsidiaries of an oil and gas company operating in Sabah that they are legally obliged to pay them state sales tax (SST).

This is after the refusal by Repsol Oil & Gas Ltd and SEA Hibiscus Sdn Bhd , both wholly-owned by Hibiscus Petroleum Berhad, to make the payment.

"The state government therefore categorically refutes the alleged basis upon which Repsol and SEAH are refusing to make payment of the SST and has already demanded payment of the same," he said in a statement on Friday . "The state government reserves its right to take any action deemed necessary within the powers, authority and jurisdiction of the state," he said.

In a group filing, the group said SEAH, which is the holder and operator of the 2011 North Sabah Enhanced Oil Recovery PSC, had not made any SST payment to the state at all.

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