KUCHING — March 13, 2020: The High Court today dismissed an application by Petronas for a judicial review to declare the State Sales Tax (SST) imposed by the Sarawak government as null and void.
Justice Azhahari Kamal Ramli awarded cost of RM50,000 to the respondents — the Sarawak Comptroller of State Sales Tax and the state government.
Azhahari found no grounds for the court to grant the declaration as Article 95B(3) of the federal Constitution which provides that the Legislature of Sabah and Sarawak may also make laws for the imposing of sales tax and that any sales tax imposed in the two states shall be deemed to be among matters enumerated in the State List, not the Federal List.
Hence the State Sales Tax Ordinance and any subsidiary legislation made thereunder is constitutional and valid.
The application, among others, sought a declaration that the State Sales Tax (Taxable Goods and Rate of Tax) (Amendment) (No 2) Order 2018, Section 2, 7, 8, 11(1), 12(1), 12(6), 12(7) and 15(d) of the Sarawak Sales Tax Ordinance 1998 and Regulation 19 C, Sarawak State Sales Tax Regulations 1998 were ultra vires the federal Constitution and thus null and void.