Reduced tax collection from Petronas possible after oil price drop, says Ahmad Maslan

Dateline 2014-11-03, The Malay Mail:

The government does not deny the possibility that tax collection from Petronas may be reduced following the drop in global crude oil prices, says Deputy Finance Minister Ahmad Maslan.

“When global prices drop, the government will accrue less revenue from petroleum sources.

“The government derives revenue from direct taxes collected by the Inland Revenue Board, indirect taxes collected by the Royal Malaysian Customs Department and petroleum tax,” he told a press conference after launching the IRD’s Innovation Day here today.

Ahmad also said lower petroleum prices may come as a relief to consumers but it would reduce the government’s revenue.

He added that the government was still studying the quantum of dividend Petronas would contribute after the implementation of the Goods and Services Tax.

He said meetings must be held between the Ministry of Domestic Trade, Co-operatives and Consumerism, Economic Planning Unit and the Prime Minister’s Department to study this further.

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