KOTA KINABALU, June 10 — The Sabah government remains fully committed to pursuing all its constitutional and legislative rights to recover the State Sales Tax (SST) due for the sale of petroleum products from both Repsol Oil and Gas Ltd (Repsol) and SEA Hibiscus Sdn Bhd (SEAH).

Sabah Second Finance Finister Datuk Seri Masidi Manjun said the step is in accordance with the State Sales Tax Enactment 1988.

Masidi, who is also the state Local Government and Housing Minister, was referring to the recent statement of Hibiscus Petroleum Bhd in relation to the refusal to make payment of the SST by its wholly-owned subsidiaries Repsol and SEAH.

"For the record, both Repsol and SEAH had applied to the (Sabah) Ministry of Finance and were subsequently issued with the requisite licence as a ‘taxable person’ pursuant to the State Sales Tax Regulations 1999.

"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 today.

Masidi claimed that there had been discussions between the representatives of the parties in relation to this issue.

However, the matter has now reached an impasse and both companies remain liable and have a continuing obligation to make payment for the outstanding amounts of SST, including penalties.

"The state government of Sabah reserves its rights to take any action deemed necessary within the powers, authority and jurisdiction of the state,” he said. — Bernama