Premier: Sarawak to continue demanding for return of stamp duty collection rights

KUCHING (May 19): Sarawak will continue to pursue its demand for the return of stamp duty collection rights from the federal government, in association with the Malaysia Agreement 1963 (MA63), said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

According to him, the matter is still under discussion.

“The federal government views it (reclaiming stamp duty rights) as something that we agree to disagree with,” he told reporters when met after officiating at the event to mark an attempt into the Malaysia Book of Records (MBOR), namely for the ‘Most Participants in Ethnic Attire in A Choreographed Dance Performance’, at Kuching Waterfront today.

Adding on, Abang Johari said the revenue from stamp duty collected through land transactions should be returned to Sarawak, in view of land matters being under the jurisdiction of the state.

“We are still discussing it because it forms the basis under Section 112D and 112C (of the Federal Constitution) for them (Putrajaya) to grant to Sarawak because this stamp duty is part of federal taxation.

“However, we feel that it should be returned to Sarawak because it is collected through transactions related to lands.”

During a townhall session at Universiti Malaya (UM) in Kuala Lumpur with Sarawakian students last Saturday, Abang Johari listed the stamp duty revenue issue as among the pertinent matters with regard to the state government’s efforts in reinstating the eroded rights, as enshrined in the MA63 and the Inter-Government Committee (IGC) Report, including issues related to joint lists or concurrent legislative allocations.

The Premier also said the stamp duty issue was among the issues that he had raised to the federal government in 2019, when the Pakatan Harapan was the federal ruling coalition under the leadership of then-prime minister Tun Dr Mahathir Mohamad.

However, based on a report, the negotiations over stamp duty collection in Sabah and Sarawak came to a deadlock following then-finance minister’s decision that ‘all stamp duty collections in any part of the country would belong to the federal government’.

Since then, the two Malaysian Borneo states have been demanding their rights over their respective stamp duty collections, on argument that based on the MA63, items being collected in Sabah and Sarawak should belong to the two.

Stamp duty is a tax imposed on certain transactions, written instruments and documents with financial, legal, or commercial implications.

Documents and instruments required to be ‘stamped’ include sales and purchase agreements, lease agreements, and since 2009, services agreements.