Imposition of 5 pct sales tax a right move — Wong

Since the imposition of state sales tax in 1998, it has generated an average of RM550 million annually for the past five years. However, this revenue is far from enough to finance our development agenda.

KUCHING: The Sarawak government ’ s de ci sion to impose five per cent sales tax on petroleum products is the right step towards increasing its financial resources for more development and brighter future for all Sarawakians.

Second Finance Minister Dato Sri Wong Soon Koh said the sales tax is conferred by the Federal Constitution under Schedule 10, Part V, Section 7; hence, it is constitutionally legitimate for Sarawak to impose the sales tax.

He said under the State Sales Tax Ordinance 1998, Sarawak could imposes sales tax on crude palm oil, crude palm kernel oil, lottery tickets and tyres, which are good revenue sources.

“Since t he imposit ion of state sales tax in 1998, it has generated an average of RM550 million annually for the past five years. However, this revenue is far from enough to finance our development agenda.

“It is indeed the right step taken by the Sarawak government to increase its financial resources in order to keep up with the rising expectation of the people for more development and

Dato Sri Wong Soon Koh, Second Finance Minister

brighter future for our next generations,” he said in his ministerial winding- up speech yesterday.

He said the imposit ion of sales tax on petroleum products would enable Sarawak to collect additional revenue of RM3.897 billion, which is about 37 per cent of the total estimated revenue of RM10.513 billion for 2019.

“The new revenue source i s v it a l i n providi ng t he necessary funding to hasten the implementation of more infrastructure projects and basic amenities for the wel lbeing of the people.

“We fully support our chief minister’s cal l to be sel fdetermining in undertaking the massive development works ahead of us,” he said.

Wong a lso s a id Sarawak would need more revenue to enhance its financial capacity to fund all the long- awaited and needed basic infrastructure and amenities that the people have been deprived of.

“Despite our intensi fying efforts, it does not at all mean that the federal government is relieved of its responsibilities to continue funding development projects in Sarawak, which among other things, include roads and bridges, water supply, schools and higher learning institut ions, hospitals and clinics, low- cost housing as well as providing funding to support the necessary services for Sarawakians,” he added.

Wong added that Sarawak had also allocated a massive RM6.049 billion for the implementation of various programmes and projects in Sarawak’s rural areas.

He v iewed the S a rawak Budget 2019 as one that places s t r ong emphasi s on b oth development- biased and ruralfocused provisions, aimed at improving the quality of life of and contributing to the wellbeing of the people.

Among the programmes and projects, he said, are rural transformation initiatives, rural water and electricity supply, road network, works on di lapidated schools, and affordable housing.

“Most of the projects are targeted for completion within the next two years.

“In this regard, I would like to urge all the implementing agencies to place great attention and efforts to ensure that we achieve our development goal to benefit all Sarawakians,” he added.