THE Penang government will continue to push for at least 20 per cent of the tax revenue collected in the state to be returned to Penang to finance development needs and safeguard the interests of its people.
Chief Minister Chow Kon Yeow said the demand was not merely about ensuring a fairer distribution of revenue, but also about granting the state government greater flexibility and autonomy in determining its development priorities and managing the allocation.
He said such an approach was crucial to ensuring that the funds received could be channelled according to the state’s economic dynamics, local needs and the interests of the people.
“The state government appreciates the Federal Government’s approval of billions of ringgit in allocations for the implementation of development projects in Penang.
“As we have consistently advocated, the Penang government supports the proposal for at least 20 per cent of the tax revenue collected in the state to be returned to Penang,” said Chow (PH–Padang Kota) during his winding-up speech at the Penang State Legislative Assembly sitting in Light Street.
Chow, who oversees the Finance, Economic Development and Land, as well as Communications portfolios, said the state government would continue to pursue the matter through the appropriate legislative and financial channels.
On a related matter, Chow welcomed the proposal to establish a Federal-State Relations Commission or Federal-State Grants Commission to support a review of the revenue-sharing formula through the National Finance Council.
He said the proposed mechanism was expected to promote a more transparent and equitable distribution of revenue, taking into account the economic contributions and development needs of individual states.
Meanwhile, addressing a proposal to expand the scope of the Malaysian Road Records Information System (Marris) fund to cover flood mitigation projects, Chow said its utilisation remained subject to the scope and guidelines set by the Finance Ministry.
He noted that the existing Marris allocation was already insufficient to meet the state’s actual needs for road maintenance and other works permitted under the current guidelines.
As such, he said any proposal to broaden the scope of Marris funding should be accompanied by an increase in allocation to ensure that the state’s road maintenance priorities would not be compromised.
“Any expansion of the scope must be accompanied by additional funding to avoid affecting the priorities of state road maintenance,” he said.
Story by Riadz Akmal