Kota Kinabalu: State Finance Minister Datuk Seri Masidi Manjun said the State Government remains committed and steadfast in its demands for the Special Grant as enshrined in the Federal Constitution.
"I wish to emphasise that the Sabah Government remains consistent, persistent and insistent that the demand for the Special Grant is as stipulated in the Federal Constitution, in accordance with Article 112C and Part IV of the Tenth Schedule, which states that 40 per cent of the net revenue collected by the Federal Government in Sabah is to be allocated," he said, when winding up for his ministry during the State Legislative Assembly (DUN), Wednesday.
He was responding to questions from Datuk Seri Mohd Shafie Apdal (Senalang), Datuk Jaujan Sambakong (Sulabayan) and Assaffal P Alian (Tungku) regarding the issue of the Special Grant during the debate session.
Masidi said the State Government continues to strive to ensure its rights in the fair and equitable distribution of revenue, hoping that this demand will receive serious attention from the Federal Government.
He said the appointment of an independent assessor depends on the outcome of negotiations held between the State and Federal Governments on June 30.
On revenue leakage, Masidi said this longstanding problem has received serious attention from the State Government. He reiterated that the Government is committed to implementing effective and comprehensive measures to ensure the State revenue is optimally collected.
“We all know the issue of revenue leakage is not new and has persisted for quite some time. The State Government takes this matter seriously,” he said.
He detailed several key measures currently being implemented, including the strengthening of revenue monitoring and management systems, such as digitisation of records and the use of a centralised tracking and revenue collection system; reviewing existing agreements to ensure the terms are favourable to the interests of the Government and the people; stricter enforcement against those who fail to comply with laws and regulations, including penalties for delayed payments or breaches of agreement terms.
In an effort to prevent leakage of State Sales Tax revenue, the Finance Ministry has conducted periodic inspections, special examinations, and desk audits, working closely with enforcement agencies such as the Malaysian Anti-Corruption Commission (MACC) and the Royal Malaysian Customs Department; and enhancing the capacity of the officers and agencies involved through technical training and financial governance to strengthen integrity and efficiency in revenue matters.
“With these measures, the State Government is striving to ensure that revenue leakage can be minimised and the State revenue can be maximised for the benefit of the people and the development of the State.”
