KOTA KINABALU: The appointment of Sabah and Sarawak state government representatives as board members in the Inland Revenue Board (LHDN) will be further reinforced through legislation, expected during the coming Parliament sitting, says Datuk Armizan Mohd Ali.
The Minister in the Prime Minister's Department (Sabah and Sarawak Affairs) said the appointments had been made administratively following the state government’s requests and the amended law will make it compulsory.
“The Federal Government has made the appointments based on vacancies, one Sabah representative in 2022 and one from Sarawak early this year, but we want the appointments being institutionalised in the law - meaning it’s no longer based on consideration,” he said.
He added that this is not a new demand but based on the Inter-Governmental Committee (IGC) report and has been implemented in the past.
“It is important to Sabah and Sarawak to have access to revenue collection information for us to make relevant demands.
“I believe this development reflects the Federal Government’s political will to settle outstanding Malaysia Agreement 1963 (MA63) issues, where this appointment issue was one of them,” he said to reporters after a function here on Monday (Oct 2).
He added that the law would be finalised through the Inland Revenue Board of Malaysia (Amendment) Bill 2023 tabling during the Parliament sitting period from Oct 9 to Nov 30.
When asked about Opposition leaders who used MA63 issues for political gain, Armizan said everyone in Sabah should put up a united front to pursue MA63 demands.
On the negotiations of the 40% revenue entitlement, Armizan said that what was important was the recognition by the Federal Government of the formula.
“Whether they (Federal Government) are capable or not (paying the 40%), that is secondary.
“While the amount (payable) is based on or considers the Federal Government’s financial standing, what is important is that the 40% formula is relevant all the time; for me, that is our stand,” he added.
