Chow Kon Yeow presses for federal government to implement SST revenue sharing with states, including Penang
GEORGE TOWN, June 23 — Penang chief minister Chow Kon Yeow has reiterated his call to Putrajaya to consider the state's request for the federal government to share the taxes collected from the state.
He said it is time that the federal government seriously consider the state government's request instead of pushing it aside.
'I took the lead last year by asking for a 20 per cent share of the taxes collected from our state but it was not approved and not taken up,' he said in a press conference at his office today.
He said he is glad that the state-federal relations select committee chairman Gooi Hsiao Leung highlighted this issue and proposed that the federal government implement SST revenue sharing with states with the revision and expansion of the scope of the tax.
Chow said he will try to work with other menteris besar and chief ministers to look into this tax sharing issue seriously and bring it up with the federal government together.
'He said the state welcomes the federal approval for allocations for infrastructure projects, but it also requires funding to implement other state-related projects.'
'We also need to implement social welfare programmes that require funds,' he said.
He said the federal government should try to understand that every state face constraints in terms of getting sufficient revenue to run a state.
'If we cannot get a 20 per cent share, why don't we start with 10 per cent? If 20 per cent is a burden, we can understand the federal government's position as well,' he said.
He reminded the federal government that the state is not run in isolation but also in the context of contributing to Malaysia as a whole.
'My earlier announcement of being the state to contribute the second highest investment to the country is proof,' he said.
He said every state contributes investment to the country and to the national economy so it is time for federal to acknowledge each state's contribution.
In his statement on SST revenue sharing earlier this month, Gooi said Penang has limited revenue powers due to the country's current fiscal framework.
He said Penang remains highly dependent on ad-hoc federal grants.
Gooi had urged the federal government to disclose the SST collection by state, implement SST revenue sharing and establish a federal-state fiscal commission.
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