Special committee set up to review Sabah federal agencies’ tax data after 40 pct Special Grant ruling

KOTA KINABALU (Feb 3): A special committee has been established to examine the tax data of the federal agencies in Sabah, following the High Court ruling on the state’s 40 per cent Special Grant entitlement under the Malaysia Agreement 1963 (MA63).

Minister in the Prime Minister’s Department (Sabah and Sarawak), Datuk Mustapha Sakmud said that two meetings have already been held between the Sabah State Secretary and the Federal Finance Ministry on Oct 17 last year.

The ruling, resulting from a judicial review filed by Sabah Law Society (SLS) under Order 53 of the Rules of Court 2012, reaffirmed Sabah’s fiscal rights and ordered the federal government to conduct a new review within 90 days and to reach an agreement with the state government within 180 days to fulfil the entitlement.

“Regarding the 40 per cent, I have requested briefings from the Attorney General’s Chambers and the Finance Ministry on the latest status.

“According to the report, two meetings have already been held between the state government and the Finance Ministry, and a special committee has also been formed to review the federal agencies’ tax data in Sabah,” Mustapha said after attending a meeting of The Sabah United Association of Ethnic Bumiputera Native Council (MAGEBS) at the Sabah International Convention Centre here.

He added that the matter is progressing positively and he is personally monitoring the process to ensure the court-mandated timeline is met.

Mustapha also called on MAGEBS to assist both the federal and state governments in fostering stronger relations between ethnic groups.

“This is important, as many issues are arising at present,” he said.

He expressed confidence that the federal government, his office through the Prime Minister’s Department for Sabah and Sarawak Affairs, and the state government are working diligently to implement the provisions of MA63.

“However, we are aware that in reaching agreements during these negotiations, challenges arise and the public is increasingly concerned.

“I hope MAGEBS and the presidents of various ethnic groups can cooperate to help their members understand that while we fight for our rights, we also have a responsibility to ensure that the federation and the state remain strong and harmonised.

“We do not want tensions to escalate due to these issues, causing friction between the federal and the state governments, or among NGOs (non-governmental organisations) within the state,” he added, urging MAGEBS and ethnic group leaders to play their roles in maintaining harmony and supporting the country’s continued development.