Johor asks Putrajaya for 30% of tax revenue

JOHOR BARU: At least 30% of the tax revenue Johor contributes to national coffers should be returned to the state, says Mentri Besar Datuk Onn Hafiz Ghazi.

He said the state government made this request to the Federal Government to ensure that Johor continues to enjoy better development.

“In line with Regent of Johor Tunku Ismail Sultan Ibrahim’s recent decree, the state government has put in the request,” he said in a Facebook post on Tuesday (June 11).

He added that the request was made during an audience with the Regent, which was also attended by Treasury secretary-general Datuk Johan Mahmood Merican, Economy Ministry secretary-general Datuk Nor Azmie Diron and Finance Ministry National Budget Office director Datuk Shahrol Anuwar Sarman.

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Onn Hafiz added that during the audience on Tuesday, some of the matters discussed were a proposal to build a new elevated intersection at the Second Link, a barrage and water reservoir construction project in Sungai Sedili Besar, and a river rejuvenation programme at Sungai Skudai in Kulai and Johor Baru.

“Another issue we touched on was a high-impact special project for Johor – the elevated autonomous rapid transit (E-ART) system to improve public transportation in Iskandar Malaysia.

“We also discussed the construction of East Coast Expressway 4 from Mersing-Kota Tinggi-Johor Baru,” he added.

Tunku Ismail had said that the system of the Federal Government should be revamped with Johor treated as a partner instead.

He added that Johor provides about RM48bil in tax revenue to the Federal Government, and only receives RM1.4bil in return through the annual Budget.

Meanwhile, state leader and former exco member Datuk Tee Siew Kiong agreed with Tunku Ismail’s sentiments, adding that Johor had been sidelined from development for years under a previous prime minister.

“It was not until Tun Abdullah Ahmad Badawi took over as prime minister that he recognised Johor’s potential and established the Iskandar Malaysia economic corridor in 2006,” said Tee, who is also Johor Malaysian Crime Prevention Foundation’s chairman.

He added that with Johor Ruler Sultan Ibrahim as the current King of Malaysia, more investors were confident about coming to invest in the state and spur development.

He also urged ministers from Johor to put in more effort to develop the state and not forget about it once they were in federal office.