impossible to complete the computation of the amount

'Only amount the issue' Published on: Tuesday, July 21, 2015 Email to a friend Printer Friendly Kota Kinabalu: There is no dispute that the 40 per cent net revenue derived from Sabah is legally and constitutionally payable to the State under the Tenth Schedule of the Federal Constitution, said Star Sabah Chief, Datuk Dr Jeffrey Kitingan. "The only issue is what the actual amount payable to Sabah is?" he said. Dr Jeffrey who was among those present at the presentation of the Memorandum on the Special Grant and Additional Revenues assigned to Sabah under Parts IV and V of the Tenth Schedule, including the 40 per cent net revenue entitlement of Sabah to the Prime Minister Datuk Seri Najib Tun Razak, last Wednesday, said: "Najib had agreed that if the payment was provided to be paid under the Federal Constitution then it should be honoured and paid to Sabah." In this respect, he said the State Government should take action to implement them and not beat about the bush trying to please their political masters in Kuala Lumpur and Putrajaya as well as giving lip service that they supported the move. He said there were huge collections of revenue derived from Sabah by the Federal Government from companies and other entities that are not Sabah based but with profits derived from operations in Sabah. Among them were major oil plantation and other trading companies operating in Sabah but based in Malaya or Sarawak, he said, adding that the issue was highlighted in the Memorandum submitted to the Prime Minister. At the time of the formation of Malaysia in 1963, the Sabah leaders were magnanimous in agreeing to contribute 60 per cent of Sabah's revenues to the Federal Government in return for the assurances of development and security to be provided by the Federal government. However, whether development and security was provided to Sabah is a major bone of contention by most Sabahans. "Almost all genuine Sabahans agree that the Federal Government failed to provide development or security to Sabah. Even Najib has acknowledged that past leaders have not done enough for Sabah and Sarawak. "Given that the Federal Government had failed to provide the requisite development comparable to Malaya and if the matter is now brought before the constitutional court or court of law, it is likely that Sabah will be waived from contributing the 60 per cent," he said in a statement, Monday. In fairness and in the spirit of federalism, Dr Jeffrey who is also Bingkor Assemblyman said the Federal Government should immediately remit the 40 per cent entitlement starting in 2016 on those revenues that are not in dispute such as income tax, GST, customs duties and other collections by federal departments and agencies while efforts are made to compute the actual amount payable. At the same time, efforts should also be focused to determine the outstanding arrears and accrued interest on the 40 per cent entitlement that was not paid since 1974/1975. Also included in the Memorandum was the 10 per cent export duty on petroleum exported from Sabah to be assigned to Sabah in lieu of royalties and a revision of the import and excise duties on petroleum products currently fixed and grossly undervalued at RM120 million annually whereas consumption had risen to record levels of RM8.5 billion in 2013 and still increasing annually. On the other hand, Dr Jeffrey said the State Government could have acted through the National Finance Council (NFC) provided under Article 108 of the Federal Constitution in which Sabah is entitled to a permanent representative and required to meet at least once a year. The NFC was tasked with decisions on federal grants and assignment of revenues, he said, adding that this was another matter highlighted in the Memorandum given to Najib.