KOTA KINABALU: A former state minister said today the Gabungan Rakyat Sabah (GRS) government should invest the RM1.25 billion sales tax on petroleum products the state will receive next year on developing and upgrading public infrastructure.
The DAP’s Luyang assemblyman Phoong Jin Zhe, who was the previous youth and sports minister, said the present administration would have this additional income thanks to efforts by the then Warisan Plus-led government in introducing the sales tax.
“The coalition led by Shafie Apdal was able to introduce the petroleum natural gas sales tax that would be bringing the state an additional RM1.25 billion in revenue.
“This was an achievement during our tenure. The new government should utilise this new income by investing on developing public infrastructure and fixing worn-out infrastructure to stimulate the local economy,” he said in a statement here today.
This was among several proposals from Phoong ahead of the GRS government’s first budget after winning in the Sept 26 state polls.
Deputy Chief Minister Jeffrey Kitingan had previously said the state government was expected to collect 5% oil and gas sales tax from national oil company Petronas, amounting to RM1.25 billion, next year.
Jeffrey said the issue had been brought to the attention of Prime Minister Muhyiddin Yassin who had agreed to it.
He said the funds would come straight from Petronas. Hence, it was not included in the national budget.
Jeffrey said the state might include it in the state budget scheduled for this Friday.
Meanwhile, Phoong also suggested that the Sabah government establish or restructure a current government-linked company (GLC) to coordinate with the federal government over the RM150 million bus transformation initiative.
He said Sabah should emulate the Selangor and Penang governments by allocating more than RM10 million to purchase and run modern buses, provide free bus services, build modern bus-stops and expedite plans to allow Kota Kinabalu to have a reliable and modernised public transportation system.
Besides that, he said the state should also expand its Covid-19 fund by increasing subsidies to ensure all groups were taken care of, especially hawkers, school bus operators, food delivery drivers or riders, and tour guides.
“I also suggest providing special aid to those aged above 60, especially those living alone.
“They should also increase the Bantuan Am (general aid) subsidy and monthly subsidy for elders from RM300 to RM500 monthly through the Welfare Services Department,” Phoong said.