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Penang to present 20% tax return proposal at MB, CM meeting | Scoop
Penang Chief Minister Chow Kon Yeow said experts think the proposal could be implemented with an amendment to the Federal Constitution or a policy change by the prime minister, with agreement from all Malaysian states. – Bernama file pic, May 30, 2024
News

Penang to present 20% tax return proposal at MB, CM meeting

Proposal will be approved by the Penang State Executive Council before moving forward

Bernama
Updated
3:56 PM MYT

 

GEORGE TOWN – Penang will present its proposal to return 20% of the tax revenue collected from the state by the federal government at the upcoming Menteri Besar and Chief Minister’s meeting in July.

Chief Minister Chow Kon Yeow said the proposal will first be approved by the Penang State Executive Council before moving forward.

“I will bring up the discussions from the state legislative assembly because we want to see changes in revenue sharing with the federal government.

“We do sympathise with the federal government. I am not sure if my proposal will be taken seriously because the federal government is also facing financial constraints,” he said during the Penang state legislative assembly session today.

He was responding to a question from Goh Choon Aik (Bukit Tambun-PH) about the state’s contribution to foreign direct investment and the state government’s efforts to seek tax revenue for infrastructure development.

Chow (Padang Kota-PH) said that experts think the proposal could be implemented through an amendment to the Federal Constitution or a policy change by the prime minister, with agreement from all Malaysian states.

Yesterday, he asked the federal government to review the tax distribution system to return 20% of the tax revenue collected to the state, to facilitate more effective development programmes and projects.

Chow also stated that the state government is implementing strategies to reduce the projected 2024 budget deficit through internal controls and spending cuts without affecting projects beneficial to the people.

“Based on the state budget presented and approved by the state legislative assembly in November 2023, the state government expects a deficit of RM514.52 million, as nearly 60% of the operating expenses involve grants and fixed payments,” he said.

In another update, he mentioned that Penang has no plans to amend the State Constitution to establish a fixed five-year term for the state legislative assembly.

He said that dissolving the assembly is under the authority of the governor as stated in Article 19 of the State Constitution. – May 30, 2024

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