Sarawak will absorb the Goods and Services Tax (GST) for local authorities and government services in the state, said Chief Minister Adenan Satem.
He said the move was part of the state government's efforts to lighten the burden of the people in the state but did not say when it would be implemented.
Adenan said the GST was outside his jurisdiction as it came under the Federal Government.
He said the state government was aware that the GST had caused the price of various goods in the state to increase, thus becoming a burden on the people.
"We will pay (the GST to the federal government) on behalf of the people. We are doing this for Sarawak," he said at a ceremony to abolish toll collection on the Lanang Bridge here today.
To date, Terengganu and Penang have announced that they would be following Johor's footsteps in absorbing the GST imposed on local governments for services provided to the people.
Prior to this, Adenan had announced the lowering of electricity tariffs for domestic and industry use, abolishing the toll for the bridge and reducing charges for ferries plying the state's rivers.
He also said he would continue discussions with Petronas to increase the petroleum and gas royalty for Sarawak from five to 20 per cent.
Petronas has so far allocated RM2.1 billion in contracts for Sarawak companies.
"We do not want Sarawak citizens to just look on while others take the petroleum and gas from here. The petroleum and gas are ours. We should not just be observers, we have to be part of the petroleum and gas industry," he said.
The chief minister also urged Sarawakians to work with him to serve the state for the sake of their future.
With the state elections due soon, Adenan appealed to the locals to give him an opportunity to head the state government for another five years.
He said this would enable him to help resolve many issues faced by the locals such as the problem of illegal logging as well as corruption.
- Bernama
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