Sabah pushes for partial payout of tax share

Deputy chief minister Masidi Manjun says customs collections and income tax figures are public information and should not be disputed.

Deputy chief minister Masidi Manjun said Sabah wrote to the federal government on April 10 seeking payment based on two tax sources, the Borneo Post reported.

“Our position remains as previously stated. There are two types of taxes which, in our view, are largely undisputed, namely customs collections and inland revenue board taxes, and we do have the figures,” he told the Sabah legislative assembly.

He said the data is published annually and should not be subject to dispute, adding that Sabah is seeking 40% of these collections while discussions continue on other components.

Based on state estimates, total collections from income tax and customs duties in 2025 stood at RM7.547 billion, with 40% amounting to RM3.019 billion.

Masidi, who is also the state finance minister, said Sabah’s wider 40% claim covers all taxes it believes it is entitled to, but acknowledged that some components are still under negotiation and could not be made public.

“We do not negotiate through the press. There is a need to respect the negotiation process and the positions of both parties.

“There are statistics we can share, but others are still under discussion and should not be disclosed as they may affect our position,” he said.

Last year, the High Court, in a judicial review filed by the Sabah Law Society, ruled that the federal government had breached its constitutional duties by failing to honour Sabah’s 40% share of net revenue for the “lost years” of 1974 to 2021.

The court said that no reviews were conducted until 2022.

However, the Court of Appeal has since granted a stay, saying Putrajaya could face serious financial implications if it is forced to comply before the appeal is heard.