PUTRAJAYA: The government has received the first dividend payment from state oil company Petroliam Nasional Bhd (Petronas), said Ministry of Finance (MoF) secretary-general of treasury Tan Sri Dr Mohd Irwan Serigar Abdullah.

“Petronas has agreed to pay the government RM26 billion in dividend [for the financial year ended Dec 31, 2014] , and there is no two-way about it. They have credited the first payment, while the remaining payment will be in several tranches of some RM2 billion until completion this year,” Mohd Irwan told reporters after launching the 1Asean Entrepreneurship Summit 2015 yesterday.

Last week, Petronas announced a dividend payment of RM2 billion for the fourth quarter ended Dec 31, 2014, bringing the total payout for the year to RM26 billion.

In 2013, Petronas said in its annual report that it had paid a total of RM73.4 billion to the government, comprising RM27 billion in dividend, RM33.3 billion in taxes, RM12 billion in cash payment and RM1.1 billion in export duty.

Between 1974 and 2013, Petronas said it had contributed a total of RM806 billion to the government’s coffers.

On a separate issue, Mohd Irwan urged car sellers and the automotive association to discuss potential double taxation issues on stocks of unsold cars with the Royal Customs Department.

“I don’t see any double taxation [occurring] on unsold stocks [of cars] because come April, only the goods and services tax (GST) will be levied. Still, we urge the industry association to discuss with customs to find amicable solutions,” Mohd Irwan said.

He said the government will not impose the GST on ongoing contracts as well as those signed before April.

“Only contracts signed after April 1 will be subjected to the GST,” he said.

Nevertheless, Mohd Irwan said car sellers should strive to sell their stocks before the implementation of the GST next month.

Car sellers are known for stocking their inventory at least one month ahead, and the Malaysian Automotive Association (MAA) had voiced its concerns that unsold stocks of cars could be subjected to additional tax in April, which may drive prices up.

To recap, the MAA said cars bought before April were subject to a sales and services tax of 10%, but unsold cars could be charged an additional 6%, with a possibility that any additional cost could be passed to consumers, if it was not properly rectified.

As at March 1, 2015, Mohd Irwan said, the MoF has seen a total of 345,939 companies registered for the GST to date.

“Initially, we had expected 160,000 businesses to register for the GST, but the number has since doubled. I am monitoring this issue closely and we are encouraging businesses to register for the GST before it is implemented in April,” he said, adding that failure to do so may result in forced registration or a penalty.

According to the MoF, businesses are required to register for the GST if their taxable supply and taxable turnover in one year is more than RM500,000.

This article first appeared in The Edge Financial Daily, on March 3, 2015.