KUALA LUMPUR: The Ministry of Finance cannot disclose the specifics of the revenue collected from the state of Sabah at this time to avoid disrupting matters under consideration in the negotiations between the Federal Government and the Sabah Government.
According to the Ministry of Finance, this is a result of the court ruling in the case of Sabah Law Society v. The Government of the Federation of Malaysia, the Federal Government, and the Sabah State Government.
Negotiations between both parties have commenced to refine the provisions regarding the special allocation to the state of Sabah under Article 112D of the Federal Constitution.
The Ministry stated this in a written response to the Dewan Rakyat.
The Ministry of Finance responded to a question from Datuk Seri Wilfred Madius Tangau (PH-Tuaran) who inquired about the types of revenue collected by the Federal Government from Sabah, and the total amount collected each year for the period from 2020 to 2025.
The Ministry of Finance emphasized that the Federal Government receives both direct and indirect tax revenues, which are collected by the Inland Revenue Board of Malaysia and the Royal Malaysian Customs Department, respectively.
Direct taxes include corporate and individual income tax, petroleum income tax, capital gains tax, property gains tax, and stamp duty.
Indirect taxes consist of import duties, export duties, excise duties, sales tax, service tax, tourism tax, entertainment duty, extraordinary profit levy, goods vehicle levy, and release levy.
The Ministry of Finance stated that in accordance with the provisions of Article 97 of the Federal Constitution, the revenue from direct and indirect taxes must be included in the Federal Consolidated Fund (KWDP), except for entertainment duties, which are one of the revenue sources allocated to the State Government as stipulated under Part III, Schedule Ten of the Federal Constitution.
