20% oil royalty on profit, so wait for amendments to law, says Putrajaya

Dateline 2018-07-25, FMT:

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.

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