KOTA KINABALU: Sabah is looking to expand its state Sales and Service Tax (SST) to cover gold under its Budget 2025 tabled by state Finance Minister Datuk Seri Masidi Manjun (pic).
Tabling a RM6.421bil surplus budget, Masidi said this was among the various initiatives planned by the state in order to boost its revenue next year.
He said the state was always exploring new sources of revenue in order to enhance collection.
The Sabah government, he said, had introduced two additional items for SST earlier in April this year, namely on silica sand/silica and palm oil biomass products exported from the state.
“Additionally, the Sabah government will also diversify its revenue sources by imposing SST on gold in due course,” he told the Sabah State Legislative Assembly here yesterday.
“Revenue is the main driving force for implementing and facilitating the operational expenditure and the state’s development programme and project.
“With better revenue collection, the state’s financial position will remain strong and stable,” Masidi added.
Earlier, the Minister said the Sabah Budget 2025, themed “Prosperous Sabah, Prosperous People”, was the first time the state has proposed the “highest-ever estimated supply expenditure in history”, amounting to RM6.421bil.
At the same time, he said, the state estimated revenue of RM6.445bil next year.
“Nevertheless, the State Budget 2025 still records a surplus budget of RM24.08mil.
“The stability of the economy and prosperity of the people are two closely related factors, as the level of economic progress will influence the standard of living of the people,” he said.
Masidi said the state expected a large chunk of its income to be derived from tax revenue of RM2.744bil, mainly contributed by its SST of RM2.597bil, land rent of RM108mil as well as port and harbour dues of RM39.5mil.
He said the next biggest revenue is from non-tax revenue of RM2.551bil, comprising main contributors such as petroleum royalty amounting to RM1.297bil; interest and proceeds from investments (RM512.47mil); sales of water (RM304mil); land premium (RM152mil); and forest produce royalty and export on timber products (RM134.5mil).
At the same time, he added, non-revenue receipts comprising receipts and contributions from the Federal Government are estimated to bring in RM1.15bil.
In preparing the state budget, Masidi said, the Sabah government has formulated several strategies to face economic uncertainty next year.
