Saturday, October 29, 2016
Will Sabah Government also Fail on 40% Revenue Rights?
"Sabahans are now waiting whether Chief Minister Musa Aman cum Finance Minister will similarly fail to comply with the Federal Constitution and fail to safeguard Sabah’s interests on the 40% Entitlement in the Sabah Budget 2017 to be tabled this 18th November," said Datuk Dr Jeffrey Kitingan, President of Parti Solidariti Tanah Airku and Bingkor Assemblyman in a follow-up press statement released today.
In Budget 2016 tabled last November, CM Musa projected a State revenue of RM3,520.29 million for the year 2016 with a proposed expenditure of RM3,490.39 million giving a surplus of RM29.90 million.
Given the current economic uncertainty and low oil and commodity prices, it is not likely that the State revenue will exceed RM3.6 billion for 2017.
Sabah’s 40% Net Revenue Entitlement is a different matter altogether although it should be very much part and parcel of Sabah Budget 2017.
Firstly, the return of the 40% Entitlement was agreed upon by Sabah’s Founding Fathers at the formation of Malaysia and provided for in Point No. 11 of the 20-Points and Paragraph 24(8) of the IGC Report. This safeguard was then entrenched in Article 112C(1) and Part IV of the Tenth Schedule of the Federal Constitution.
Secondly, the 40% Entitlement is from revenues derived from Sabah by the Federation. This includes personal and corporate income tax, GST, customs duties, oil revenues taken by Petronas, collections by all Federal departments and agencies such as JPJ, Immigration, JPN, traffic summonses, court fines, etc. etc. etc. Also included are revenues collected from international oil companies and plantation and other companies who make money from operations in Sabah but pay their taxes in Malaya or Sarawak.
Thirdly, the Sabah Chief Minister and his Cabinet Ministers are sworn in their oath as Sabah State Assemblypersons to protect and uphold the Federal Constitution.
Fourthly, the Sabah Chief Minister and his Cabinet Ministers are entrusted to look after the welfare of Sabahans as the Government of Sabah. They owe a moral, legal and fiduciary duty to the people of Sabah.
Last but not least, the 40% Entitlement, which is revenue legitimately due and owing to Sabah from revenues derived from Sabah, will add at least RM10 billion to RM20 billion annually to Sabah’s coffers which will drive Sabah economically and progressively and overcoming the current poverty and lack of development.
Come 18 November 2016, the Sabah Budget 2017 will finally show whether the Sabah BN government and its Cabinet will have the hearts and welfare of all Sabahans in their mind and action. Will they comply with the provisions of the Federal Constitution, which they are sworn to safeguard, uphold and protect, by including Sabah’s 40% Entitlement OR will they fail all Sabahans and bow subserviently to the wishes of the Federal government and not comply with the Federal Constitution?
Posted by wikisabah at 7:22:00 PM