By Oli
KOTA KINABALU: United Progressive Kinabalu Organisation (Upko) will be presenting a proposal on the mechanism of implementing the return of 40 per cent net revenue to Sabah.
Its president Datuk Ewon Benedick said that the party would have a roundtable discussion on the matter with experts in legal, audit, inland revenue and on Dec 19.
The Kadamaian assemblyman had during last week’s state assembly sitting debated that there should be a new formula on getting back the entitlement of 40 per cent net revenue.
“I was talking about the mechanism on how to implement the 40 per cent giving 40 per cent back to Sabah.
“For example, are we ready to reduce the amount of development allocation and offset (the balance) as grant payment for the 40 per cent?Is Sabah ready towards that direction?
“Is Sabah ready to start the refund directly from the Inland revenue board and Customs department in Sabah? We know that there are multinational companies paying directly to Kuala Lumpur as they were registered in Kuala Lumpur,” he told the media after the launching of “Coffee Cactus” by Koperasi Usahawan Peniaga Inanam Berhad ( KoUpio) at a hotel here.
Ewon, who is the Entrepreneur Development and Cooperatives minister, said that there is a necessity to address loopholes in the implementing rights in Malaysia Agreement 1963 to become a counter proposal should there be any disagreement with the federal government in future.
“Sometimes the federal government, for example the Finance Ministry would propose suggestions which we might not agree to, but if we do not state our counter proposal and suggestion, how to fulfil the return of 40 per cent.
“That is why the solutions should be different and this involves consensus at the state government level.
"There must be a starting point; if we want to discuss the direct taxes collected in Sabah and the indirect taxes, it undoubtedly involves a lengthy process that includes interpretations of numerous legislations. This will extend the timeline (by July 18 next year) which is already determined by the government.
“That is why Upko is having a roundtable discussion in which we will present the suggestion to the state and federal government. I will also register it when I attend the MA63 technical committee which will convene early next year.”
Ewon also said the discussion is limited among party members and experts to have focused discussion and prevent political debates with the public.
However, he urged leaders and the public to contribute their ideas to him.
Earlier, Ewon announced RM40,000 to assist KoUpio to develop its coffee product and lemongrass-based essential oil.
Present were Assistant Agriculture, Fisheries and Food Industries minister Peto Galim and and KoUpio chairperson Datin Easter Sikayun.
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