KOTA KINABALU, Dec 9  –The Sabah government is working to find new sources of revenue for the state to ensure its revenue collection is always strong and sustainable, the  State Legislative Assembly was told today.

Chief Minister Datuk Hajiji Noor said the state government was aware that the state currently depended on petroleum commodities and crude palm oil for revenue.

Although the market price of the two commodities was competitive, he said, the price would fluctuate as it is determined by global market demand.

“The government will ensure the new sources of revenue will not burden any party…a win-win approach will be the basis for the government in taking any action for the interest of the state and the people.

“All these initiatives and efforts must be supported with high commitment, cooperation and solid support from all parties,” he said when winding up the debate on the Sabah 2022 Budget here today.

Hajiji tabled the 2022 state budget last Friday (Dec 3) involving an allocation of  RM4.596 billion with state revenue collection estimated at RM4.707 billion next year, making it a budget surplus of RM110.68 million.

The state government, he said, would continue its efforts to increase revenue collection through various approaches,  including improving the collection system; intensifying enforcement and increase state government investment returns.

On the State Sales Tax (CJN, he said , it was one of the main contributors to the state government’s finances, therefore the state government had no plans to reduce the rate.

However, he said, the government was prepared to consider proposals from industries that can provide high returns and economic spillover effects to the state.

As for the CJN on petroleum products, Hajiji said only two types of petroleum products were taxed, namely petroleum crude oil and natural gas or liquefied natural gas,  at a rate of five per cent for each product.

Meanwhile, he announced an allocation of RM2 million next year to each of the 73 state constituencies in Sabah.


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