Kota Kinabalu: The State Government collected RM6.22 billion in State Sales Tax (SST) on crude palm oil since 2018, said State Finance Assistant Minister Datuk Julita Mojungki.
For this year, as of July, RM739.53 million has been collected so far.
Julita said RM845.36 million was collected in 2018, RM789.58 million in 2019, RM919.15 million in 2020, RM1.35 billion in 2021 and RM1.56 billion in 2022.
“Indeed, this is one of Sabah’s main revenue sources. In 2022, this tax contributed to 22 per cent of the State’s total revenue.
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“The determined price and production of crude palm oil is also beyond the State Government’s control. Therefore, the fluctuating performance of this tax collection is noticeable each year,” she said during question time.
She was responding to Sri Tanjong Assemblyman Justin Wong who asked about the amount of SST on crude palm oil imposed at 7.5 per cent that had been collected by the State Government and how much of it would be channelled to repair the roads in estates.
On road repairs in palm oil estates, Julita explained there are two types of roads maintained by the State Government and registered in the MARRIS System under the Public Works Department (JKR) – paved and unpaved roads.
“From 2018 to 2023, RM5.95 million was spent to maintain paved roads (105.66km) and RM87.74 million for unpaved roads (518.45km).
“The roads involve Beaufort, Keningau, Kinabatangan, Kudat, Kunak, Lahad Datu, Semporna, Sandakan, Tawau and Telupid districts.
“I would also like to clarify that roads within the plantation are built by the owner of the estate.”
Meanwhile, State Finance Minister Datuk Seri Masidi Manjun said all tax revenues would be put into the State’s consolidated fund, adding that the SST tax revenue collected on crude palm oil does not mean it would be re-channelled to just the palm oil sector.
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