JOHOR BARU: The state government is hoping that the federal government considers a proposal mooted by the Johor Regent to return 25% of taxes collected to the state's coffers, says Datuk Onn Hafiz Ghazi.
The Johor Mentri Besar described the proposal as rational, strategic and far-sighted.
"This is not a proposal made without basis or ignores the close cooperation with the federal government.
"As a state which has contributed to the country's prosperity, we should be allowed to manage finances with fair and effective administrative powers.
"We hope that this proposal is carefully considered for mutual interest, " he said in a statement on Wednesday (July 23).
He said Johor was now facing an urgent need to speed up various people-related projects, including enhancing infrastructure projects, healthcare, food mitigation and people's welfare.
He outlined that Johor was among the major contributors to the country's economy and in the first quarter of 2025, Johor recorded the highest approved investments into Malaysia totalling RM30.1bil.
"In 2024, we achieved the highest gross domestic product (GDP) growth in the country with 6.4%, which is higher than the 5.1% national average," he said, adding that the state's agriculture sector has been at the forefront with sales of RM27.2bil.
He credited the successes under the leadership of the Johor Regent together with the close relationship between the state and federal governments.
On Tuesday, Tunku Ismail Ibni Sultan Ibrahim mooted the suggestion for 25% of Johor's income tax revenue to be returned to Johor.
He cited examples of the delayed opening of the Pasir Gudang Hospital, autogate system disruption at the Sultan Iskandar Building Customs, Immigration and Quarantine complex (BSI) and the Sultan Abu Bakar CIQ complex (KSAB), as well as matters related to hospitals, flood mitigation projects and others.
"Through this tax return, we would not need to burden the federal government or submit applications to the Federal Government and then endure a long wait for approval," he said.
