20% oil royalty on profit, so wait for amendments to law, says Putrajaya
Minderjeet Kaur | July 25, 2018
FREE MALAYSIA TODAY
The government says fulfilling its promise to increase oil royalty for the 4 oil-producing states will take time.
DEWAN RAKYAT
Oil rigs seen off the coast of Sabah, one of four oil-producing states which have been promised a 20% oil royalty by the PH government. (Bernama pic)
KUALA LUMPUR: The federal government will only implement its promise to pay 20% royalty to oil-producing states after amendments are made to the Petroleum Development Act 1974, said Economic Affairs Minister Mohamed Azmin Ali.
“It cannot be carried out immediately as the act carries out calculation based on gross profit and not net profit.
“Due to that, if the government wants to increase the oil royalty to 20%, it will take time as an amendment is needed,” Azmin (PH-Gombak) told Dewan Rakyat today.
He said to increase oil royalty to 20% from gross income would seriously affect Petronas and the federal government.
Azmin said talks would be held between Putrajaya, Petronas and state governments on the matter.
The four oil-producing states in Malaysia are Sarawak, Sabah, Terengganu and Kelantan.
Pakatan Harapan in its election manifesto had promised that these states would get 20% oil royalty
The government says fulfilling its promise to increase oil royalty for the 4 oil-producing states will take time.
DEWAN RAKYAT
Oil rigs seen off the coast of Sabah, one of four oil-producing states which have been promised a 20% oil royalty by the PH government. (Bernama pic)
KUALA LUMPUR: The federal government will only implement its promise to pay 20% royalty to oil-producing states after amendments are made to the Petroleum Development Act 1974, said Economic Affairs Minister Mohamed Azmin Ali.
“It cannot be carried out immediately as the act carries out calculation based on gross profit and not net profit.
“Due to that, if the government wants to increase the oil royalty to 20%, it will take time as an amendment is needed,” Azmin (PH-Gombak) told Dewan Rakyat today.
He said to increase oil royalty to 20% from gross income would seriously affect Petronas and the federal government.
Azmin said talks would be held between Putrajaya, Petronas and state governments on the matter.
The four oil-producing states in Malaysia are Sarawak, Sabah, Terengganu and Kelantan.
Pakatan Harapan in its election manifesto had promised that these states would get 20% oil royalty
