BY MOHD NASEER SALLEH
IT is of utmost importance that Sarawak has access to the nation’s finances, particularly on revenues generated through taxes collected from the state.
This will allow Sarawak to claim for its share of the tax revenue. To enable this, the state must have a representative at the federal Inland Revenue Board (IRD).
On Oct 6, the federal Cabinet approved a proposal to amend the Inland Revenue Board of Malaysia (LHDN) Act 1995 allowing Sabah and Sarawak representatives to sit on the LHDN board.
Finance minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz subsequently tabled the amendment to the Act in Parliament after the Cabinet approved the proposal on Sept 30.
Representation on the board is aimed at ensuring Sabah receives its rightful share in tax revenue returned to the state, and Sarawak receiving the correct amount of annual special grant allowed for under the Federal Constitution.
Premier Datuk Patinggi Ta Sri Abang Johari Tun Openg has exhorted for a Sarawak representative on the LHDN board to monitor actual contributions from the state to the national coffers.
“There needs to be a representative from Sarawak and Sabah on the board. If we have a representative there, we will be able to know the actual revenue of the country.
“We do not want them to simply give Sarawak grants in accordance with Article 112D without a formula. We want the formula to be there because it is our right to know the revenue accrued to Sarawak.”
Abang Johari said Sarawak had previously stressed that the special grant must be specified with a reasonable formula based on the federal government’s annual revenue and not a fixed amount.
He said although Sarawak did not want to pressure Putrajaya by setting a fixed amount, it must be followed by a formula to create a win-win situation for both sides.
Sarawak has since submitted the name of its candidate to sit on the Inland Revenue Board (LHDN) to ensure the state receives the right amount of annual special grant under Article 112D of the Federal Constitution.
