6 days ago
‘Important' for Johor to get back 25 per cent of tax revenue given to federal government: Regent
KUALA LUMPUR: Johor Regent Tunku Ismail Sultan Ibrahim has again called for a larger portion of the state's income tax revenue that goes to federal coffers to be returned to it.
This comes amid growing concerns over infrastructure development and project delays in the southern state, he said.
'When 25 per cent of Johor's income tax revenue is returned to Johor, Johor can stand on its own feet,' he wrote in a Facebook post on Tuesday (Jul 22).
The regent had previously said that Johor gave the federal government about RM48 to RM49 billion (US$11.36 billion to US$11.59 billion) a year in tax revenue, but received only RM1.4 billion in return. That amounts to an estimated 2.85 per cent return.
Tunku Ismail's latest comments came following news of the postponement of the Pasir Gudang Hospital's phased opening. Initially scheduled for next month, it has been delayed to January 2026, much to the regent's disappointment.
Tunku Ismail also pointed to the issue of autogates system disruptions at Johor's major land checkpoints - the Sultan Iskandar Building and the Sultan Abu Bakar Complex - as well as matters related to flood mitigation projects as to why more of the state's revenue should be returned to them.
'I wish to convey to Johoreans how important it is for 25 per cent of the state's income tax revenue to be returned to Johor.
'Through this tax return, we would not need to burden the federal government or submit applications to (them) and then endure a long wait for approval,' he said.
Malaysia's constitution centralises revenue collection - including all forms of taxes - at the federal level. The federal government then returns a percentage of this to the states based on their population.
According to a commentary posted on the ISEAS-Yusof Ishak Institute's website in December 2023, state governments received revenue of RM926 per capita, about one-tenth of the federal government's RM8,969 per capita tax in the year 2022.
In June last year, Tunku Ismail said Putrajaya should stop viewing Johor as 'belonging to Malaysia', likening the state to being a beggar for constantly having to highlight its needs.
He had then also urged the federal government to consider allowing Johor to keep 20 per cent to 30 per cent of its tax revenue in the state
'Until when is Johor going to be a beggar? The system in the federal government from then until now must change, as Johor does not belong to Malaysia. We are partners, so you have to start treating us like partners,' he was quoted as saying by news portal Scoop.
Tunku Ismail was appointed Johor regent at the end of January 2024 after his father ascended the throne to become Malaysia's king for a five-year term.
Penang's chief minister Chow Kon Yeow had in June this year also renewed calls for the federal government to consider returning 20 per cent of tax revenue to the state for its development.
He had said Penang continued to be among the top contributors to Malaysia's national coffers, but has been "shortchanged" when it comes to federal allocations.
"Now is an appropriate time for the federal government to consider this seriously and not just push it aside," he was quoted as saying by the News Straits Times.
Sabah has also for years also been trying to negotiate a return of its entitlement of 40 per cent of its revenue as stated in the federal constitution, which it says is crucial for economic development.
