01/12/2022 (New Straits Times) - KOTA KINABALU: The Sabah government said the state is still demanding the 40 per cent net revenue derived by the federal government from the state and claims that say otherwise are a misunderstanding.

State Finance Minister Datuk Seri Hajiji Noor said the formation of the unity government would bring unity and justice to all the people of Sabah.

"I have voiced and affirmed the state government's position at a meeting of the Special Council on the Malaysia Agreement 1963 (MA63) to continue to demand the right to 40 per cent of the net revenue of the federal government in Sabah, as stated in MA63.

"The state government will make sure our needs and interests are prioritised and fought for.

"I hope this matter will no longer be distorted because it can cause confusion among the people.

"Let's join hands and work together to demand the rights of the people of Sabah," he said during the state ministry's winding up speech at the State Legislative Assembly sitting here.

Hajiji, who is also chief minister, said the increment of payment to RM125.6 million that was received this year was lower than what the state should get according to the Federal Constitution and MA63.

"I would like to emphasise that the increase in payment is accepted without prejudice on the basis that it is an interim arrangement.

"It is the right of the state government to rely on the original formula as stated in Article 112C and Part IV of the 10th Schedule of the Federal Constitution, as well as obtaining any arrears due to the lack of review of special grants since 1973.

"However, to enable the interim payment to be made, the Federal Constitution Order (Review of Special Grants Under Article 112D) (State of Sabah) 2022 needs to be gazetted."

On another matter, Hajiji thanked the Malaysian Anti-Corruption Commission (MACC) for helping the state retrieve RM62 million from state sales tax on crude palm oil (CPO).

He said officers from the state Finance Ministry and state Civil Service Department joined the MACC in an operation dubbed Op Tiris from Oct 11 to 22 involving 100 palm oil factories in the state.

"In the middle of this month, we received a full report from the MACC and found that 58 oil palm mills had under-declared their sales of CPO.

"The state government has started receiving payments of tax arrears and RM2.87 million has been received.

"The state government is confident and believes more companies will come forward to pay their outstanding taxes."

https://www.nst.com.my/news/nation/2022/12/856632/sabah-still-wants-40-cent-net-revenue-federal-govt