2 days ago
- Business
- New Straits Times
Sabah collects RM32.26 billion in state sales tax since 1999
KOTA KINABALU: Sabah has collected RM32.26 billion in state sales tax (SST) from 1999 until June 30 this year, said State Finance Minister Datuk Seri Masidi Manjun.
He said that the SST is an additional source of revenue for Sabah and Sarawak, as provided under Part V of the Tenth Schedule of the Federal Constitution.
Masidi said the last amendment to this Enactment was made in 2018, covering only crude palm oil (CPO), lottery tickets, and slot machines.
Since then, six more items, which are petroleum products, fishery commodities, scrap iron, silica sand, oil palm biomass, gold and silver, were added between 2020 and 2025.
In 1999, SST collection amounted to RM89 million, or only seven per cent of the state's total revenue.
However, by 2024, SST revenue had surged by over 3,000 per cent, contributing around RM3.03 billion, or 44.5 per cent of Sabah's total state revenue and with average monthly collections of around RM250 million.
Masidi was speaking while tabling the amendment for State Sales Tax Enactment 1998 at the state legislative assembly sitting here.
"This demonstrates that SST is not only a significant source of revenue but also a primary mechanism for sustaining Sabah's fiscal health and economic development.
"The State Government extends its appreciation to all SST taxpayers for their contributions toward driving the state's economy and development for the benefit of the people," he said, adding as of now there are 386 licensed SST holders.
Given the importance and substantial contribution of SST to the state's revenue, Masidi said there is a need to improve and amend the SST legislative framework.
The proposed amendments aim to ensure the law remains relevant and responsive to current developments, including changes in the economic landscape and industry structure.
The amendments also take into account the need to ease compliance and promote fairness for taxpayers, by reducing financial burdens and providing dispute resolution mechanisms when necessary.
The amendment was passed.
