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KUALA LUMPUR : The promise of Pakatan Harapan (PH) to offer a 20% royalty to oil producing states will take time, as the law needs to be amended and states must be consulted. [19659002LinisterofEconomicAffairsDatukSeriMohamedAzminAliaconfirmedtowardsbenefitsfrombenefitsfrombreadcrumbingandthatiscurrentlyaddressed
He said that the government does not provide any constraints to increase the fee when writing.
"This proposal could not be implemented immediately since it contradicts the Petroleum Development Act (PDA) of 1974 because the current calculation is based on gross profit and not on net profit. ", he said in the Dewan. Rakyat, here today.
"If Petroliam Nasional Bhd were to increase this royalty to state governments on a gross margin basis, this would have serious implications for Petronas and the federal government's financial statements." 002 "The royalty payment mechanism will have to be settled between the federal government and Petronas. This issue will also need to be discussed with state governments as these issues require their agreement. "
He was answering a question from Datuk Seri Wilfred Madius Tangau (Upko-Tuaran) on when the government intends to implement the 20% royalty for the four states – Kelantan, Terengganu, Sabah and Sarawak – as promised in the Electoral Manifesto
On a further question about the amendments to be made to the 1974 PDA, Mohamed Azmin said that he had to go through the Attorney General's Chambers
"We We are now bound by the law, which states that the oil royalty must be based on the gross value and not on the net profit. If we want to maintain this practice and increase the fee to 20%, it will have implications. "
Mohamed Azmin explained that at the present time, Petronas had to pay 10% royalties twice a year from its gross output to the government. Prime Minister, Dr. Mahathir Mohamad, had specified the last week that the proposed 20% royalty would be based on profit and not on income.
did not behave well with some neighborhoods, which claimed that it was supposed to be based on oil and gas revenues extracted from the state, rather than on profits obtained after deducting expenses.
Meanwhile, Mohamed Azmin said The committee charged with examining oil royalty issues on the The Malaysian Agreement of 1963 will soon be established.
"Among his tasks, it would be appropriate to study and propose remedial action on several issues, including the Sabah and Sarawak rights over resources. natural. However, our manifesto did not specify a specific time frame for when this effort would be undertaken as its implementation is subject to the law and regulations that must be respected.
clauses of the agreement between Petronas and the federal government, and Petronas and the state governments, "he added
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