Kota Kinabalu: Sabah expects to collect about RM96.5 million in State Sales Tax (SST) from Petronas and its subsidiaries for March and April this year, the State Legislative Assembly was told.
State Assistant Finance Minister Datuk Mohd Ishak Ayub said the estimate represents an increase of RM8.9 million, or 23 per cent month-on-month, compared with collections in February 2026, subject to market conditions.
He said the early projection was made based on current performance, including assumptions on sales volume, oil prices, exchange rates and the SST rate of five per cent.
“In line with Section 14 of the State Sales Tax Enactment 1998, SST payments for the taxable periods of March and April 2026 are due on April 28 and May 28, respectively.
“The actual impact on SST revenue will only be known once payments are received,” he said in reply to Datuk Wong Hong Jun (Warisan–Tanjung Aru), who asked about the tax revenue collected from Petronas following the rise in petroleum prices due to the West Asia conflict.
Mohd Ishak said the conflict caused a spike in global fuel prices, adding that based on the United States Energy Information Administration, the average price of Brent crude oil jumped by around 45.1 per cent to from US$71 per barrel in February to US$103 per barrel in March.
As of last Friday, Brent crude oil rose to US$106 per barrel.
“However, the rise in prices does not fully translate into higher state revenue, as the stronger ringgit against the US dollar has reduced the value of sales when converted into local currency.
“On April 24, the exchange rate was RM3.97 (against the US dollar),” he said.
Mohd Ishak added that although oil prices have risen significantly, the increase in state revenue has been more moderate, as it is also influenced by factors such as exchange rates, production volume and market conditions.
“Global oil market conditions remain uncertain. Therefore, these projections are only preliminary, as market dynamics can change rapidly over a short period,” he said.
