The Internal Taxes Division has a branch (Petroleum Branch) which deals with Customs and Procedures on 

      Petroleum Products.

      The Petroleum Branch is responsible for :

• Licensing of refineries of dutiable petroleum products under Section 13 of the Sales Tax Act 1972; and

• Licensing of petroleum warehouse under Section 65 of the Customs Act 1967.

      The following products are subjected to sales tax:

• Petrol (leaded / unleaded)

• Diesel

• Naptha

• Liquified Natural Gas

      Crude petroleum and ‘condensate’ is subjected to export duty.

back to top

      Approved companies involved in petroleum upstream activities (exploration, drilling and production) are exempted 

      from payment of import duties and sales tax on materials and equipment which have been approved by the Secretary

     General to the Treasury, used directly for upstream petroleum and gas operations.

back to top

      The following vessels are eligible to take bunker supplies (diesel) duty free:

• Vessels plying between Malaysia and foreign ports;

• Vessels plying between West Malaysia and East Malaysia provided they call on foreign ports during the journey;

• Deep sea fishing vessels;

• Foreign vessels on their international journey;

• Vessels conveying cargo between local ports

• Fishing boats.