By KUCHING: It is of utmost importance that Sarawak has a representative to sit in the Inland Revenue Board (IRB) says Deputy Premier Datuk Seri Dr Sim Kui Hian.
He said this will go a long way in ensuring that the state is given what is due to them in terms of special grants pursuant to Malaysia Agreement 1963 (MA63).
“In order to facilitate (the allocation of) special grants to the rightful amount as part MA63, we need to have a representative in IRB,” he said in a Facebook post today (July 12).
He was commenting on Sarawak’s move to submit a name of its candidate to represent the state in the IRB’s board of directors, as revealed by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg recently.
Abang Johari, on Sunday said that this was the latest progress of returning Sarawak’s rights in accordance to MA63 as well as the Inter-Governmental Committee (IGC) Report 1962.
“If we have a representative in IRB, we will know how much revenue the country generates. Then, from there, we will know the amount that (the federal government) can give to us.
“We do not want to pressure Putrajaya (by setting a fixed amount). It must be followed by a formula to create a win-win situation between the federal government and Sarawak,” the premier was quoted as saying.
Under Article 112D of the Federal Constitution, both Sarawak and Sabah are entitled to the allocation of special grants by the federal government.
Dr Sim, who is also Minister of Public Health, Local Government and Housing said Sarawak had in the past insisted that they be represented in the board of directors for Petroliam Nasional Berhad (PETRONAS) too.
The deputy premier said with Sarawak being included in the PETRONAS board, it facilitated Sarawak’s demand for five per cent oil and gas royalty as well as the payment of five per cent State Sales Tax (SST).
At the same time, Dr Sim also pointed out a few other matters that are still being pursued by the state government, which among others, included the five per cent oil and gas royalty as well as a 36 percent of the taxes collected under the Petroleum (Income Tax) Act 1967 (PITA).
He said Sarawak is also seeking a 26 percent of the taxes collected under the Corporate Income Tax Act 1967 and a portion of the net profit of PETRONAS.
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