Is it another RM40 billion tax collections from Sabah? – Dr. Jeffrey

KOTA KINABALU - “The Inland Revenue Board in failing to disclose the federal tax collections from Sabah in 2015 and the projected collection in 2016 shows that the federal government is covering up its failure to return the 40% net revenue derived from Sabah that is legitimately due to Sabah under the Tenth Schedule of the Federal Constitution” said Datuk Dr. Jeffrey Kitingan, STAR Sabah Chief, in response to IRB Sabah Director in declining to disclose the said collections from Sabah at a forum two days ago.

In early 2013, it was reported that RM40 billion was targeted by the IRB to be collected from Sabah in 2013. However, when it was pointed out that 40% of the RM40 billion was to be returned to Sabah under the Federal Constitution, the IRB quickly back-tracked and “reduced” the amount to be collected to RM4 billion instead of RM40 billion.

Since then, the voices claiming for the return of the federal tax collections from Sabah have grown louder and stronger.

In July 2015, a Memorandum was even presented to the Prime Minister on the return of the 40% net revenue derived from Sabah and other additional revenues allocated to Sabah who in turn promised to honour the constitutional provisions and agreed to set up a Special Committee to look into it.

If the Umno-led Barisan Nasional federal government is a responsible and transparent government, there is no reason to hide the actual tax collections from Sabah. The IRB and the federal government should be truthful and not cover up the truth just because Sabah is now claiming its constitutional share of this revenue.

By failing to disclose the figures for 2015 and 2016, it will only add credence that another RM40 billion is collected from Sabah and perhaps RM42 billion for 2016 going by the IRB’s own admission that the collections will increase by another 5% to 6%.

The Sabah government should fulfil its duty and responsibility to the State and the people of Sabah and investigate into the matter and provide for the return of the 40% entitlement of the RM40 billion or whatever amount collected from Sabah for 2016.

CM Musa should include this 40% additional revenue as part of the revenue for Sabah in Budget 2016 which he will be tabling at the Sabah Legislative Assembly on 20 November 2015. Even if the federal tax collections is RM4 billion, it will add a healthy RM1.6 billion to Sabah’s revenue which is about an additional 42% of the 2015 budgeted revenue.

If CM Musa fails to add this 40% entitlement in Budget 2016, then all the State Assemblymen should stand up for Sabah’s rights and reject Sabah Budget 2016 as the failure would mean depriving Sabahans of the additional revenue for the development of Sabah and well-being of Sabahans in 2016.

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