Yong slams DBKK over tax move
Published on: Monday, June 02, 2025
Published on: Mon, Jun 02, 2025 Text Size: Yong called on DBKK to adjust its mindset and stop aligning with Federal LHDN enforcement while the billions owed to this region remain unpaid. Kota Kinabalu: Former Chief Minister Datuk Seri Yong Teck Lee criticised City Hall (DBKK) for assisting Federal tax authorities in pursuing small traders while the State is denied billions in constitutional revenue. 'Why is DBKK playing Federal tax collector role?' Yong said in a statement, here, Sunday, condemning DBKK's collaboration with the Inland Revenue Board (LHDN) in targeting hawkers labelled as 'inactive' taxpayers. He said LHDN collected RM5.7 billion from Sabah in 2024 and targets RM6.2 billion for 2025, averaging RM6 billion annually. 'This excludes other tax revenues collected by Customs and other Federal agencies in Sabah. Despite these substantial collections, Sabah has not received its rightful 40 per cent constitutional share amounting to RM2.4 billion from the RM6 billion in tax revenues. Instead, Sabah receives only an interim payment of RM600 million, a figure plucked from nowhere,' he said. Yong said there is absolutely no reason for the Federal Government to delay making annual payments of at least RM2 billion to the Sabah Government. He said the targeted hawkers and micro businesses are not major tax evaders but small, informal traders already battling rising costs, subsidy cuts and declining purchasing power. 'Enforcing tax compliance in this climate, while RM2 billion in Sabah's share remains unreturned, only worsens economic fragility and damages local economic resilience,' he said. He called on DBKK to adjust its mindset and stop aligning with Federal LHDN enforcement while the billions owed to this region remain unpaid. 'DBKK should not contradict its role as a local government agency in uplifting livelihoods in Kota Kinabalu city,' he said. Yong said until the Federal Government honours the 40 per cent entitlement without further delay, tax enforcement in this region should be re-evaluated, paused if necessary and guided by consultation with the Sabah Government and Sabah business organisations. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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