KUCHING, Oct 6 : Sarawak and Sabah will now have its representatives in the Inland Revenue Board (LHDN) following the Cabinet’s approval to amend the LHDN Act 1995.
Minister of Finance Tengku Datuk Seri Zafrul Aziz in a statement issued today said the matter was decided during the Cabinet meeting on Sept 30 and that the proposed amendment will be tabled in Parliament for approval.
“While a candidate from Sabah had already been appointed to the board on Sept 1, the amendment would seek to institutionalise having a representative from the two Borneo states,” he noted.
He said the amendent to Act 533 is a follow-up action by the federal government to the Sarawak and Sabah governments’ requests during a meeting held by the Special Council on Malaysia Agreement of 1963 (MA63) chaired by Prime Minister Datuk Seri Ismail Sabri Yaakob.
“The government believes the appointment of representatives from Sabah and Sarawak is in line with the spirit of the MA63.
“We welcome the contribution of ideas and expertise on tax administration from representatives of both state governments involving taxation discussions,” he added.
Both the Sabah and Sarawak governments had submitted the names of their candidates to sit on the LHDN board in July.
Representation on the board is aimed at ensuring Sabah receives its rightful share in tax revenue returned to the state, and Sarawak receiving the correct amount of annual special grant allowed for under the Federal Constitution. – TVS
