Sabah govt urged to register state’s claim over 40% tax revenue payment

KOTA KINABALU: Sabah should register its claim over the payment of the 40% tax revenue owed by the Federal Government to the state through its state legislative assembly, says a state Opposition leader.

Parti Kerjasama Anak Negeri (Anak Negeri) president Datuk Henrynus Amin said the party agreed with the call made by Upko president Datuk Ewon Benedick over Sabah making an official demand for the entitlement.

“The state’s demand on the matter is best done through a binding resolution in the Sabah state assembly,” he said, in a statement here on Tuesday (Jan 23).

He said the claim on the tax revenue payment should not be made directly by the Sabah Cabinet, contending such a decision would likely be indecisive and could be hampered by “vested interest”.

“As the highest decision making institution in Sabah, the state assembly is the right place for elected political leaders to articulate, debate and decide on matters affecting the state constitutional rights under the Federal Constitution.

“As such, Anak Negeri reiterates its call for the Sabah government to introduce and pass a binding resolution in the state assembly to endorse the state’s demand for the return of the 40% net federal revenue accrued in Sabah as provided for under Article 112C and Section 1(2), Part IV of the Tenth Schedule of the Federal Constitution,” Henrynus added.

Benedick had on Monday (Jan 22) urged Sabah to register the state’s official claim with Putrajaya over the payment of the 40% tax revenue it owed to the state.

The Entrepreneur Development and Cooperatives Minister said the state had never formally submitted a request to demand the Federal Government settle the tax payment Sabah was entitled to under the Federal Constitution.

He said Sabah leaders might have expressed concern over the payment either in Parliament, the state assembly, or the media but pointed out this was insufficient.

“This is because (these statements) cannot be made the basis for us to bring (the 40% revenue tax payment) to the Malaysia Agreement 1963 Implementation Action Council (MTPMA63) technical committee.

“It has to be based on an official letter of demand or claim by the Sabah government, which has never been done before,” Benedick said.