‘Labuan should be included in 40pc tax claim’
Published on: Monday, June 17, 2024
By: Sohan Das
George said many Labuan residents also wondered if the Labuan Federalisation Agreement (FA) was being honoured in view of the duty-free privilege being scrapped for cigarettes and alcohol. - Pic for illustration only.
LABUAN: Sabah’s claim for 40pc net tax revenue constitutional entitlement is making the island’s folks envious as they have been suffering economically ever since becoming a Federal Territory without being consulted and now see themselves losing out if Sabah succeeds.
“Labuan should also be eligible for the 40pc claims because the island was under Sabah jurisdiction and included in the Malaysia Agreement 1963 (MA63),” said activist George Elias.
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George said many Labuan residents also wondered if the Labuan Federalisation Agreement (FA) was being honoured in view of the duty-free privilege being scrapped for cigarettes and alcohol.
“If nothing is forthcoming Labuan folks will feel cheated and blame those responsible for handing over Labuan to Federal without seeking our views back in 1984.”
He noted that several Sabah leaders have sympathised with Labuan’s plight. “These concerns should be translated into action by Sabah willing to give Labuan a bite of the 40pc”
A NGO head and businessman ST Chia echoed similar view as the island has historical links with Sabah.
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“Putra Jaya can decide whether Labuan as a former Sabah district should be entitled to similar rights under MA63,” said Chia.
He said Labuan as FT had suffered with curbs on duty-free status, easy entry into Sabah, easy ship crew change activity, among others.
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He said many feel Labuan is facing an identity crisis with one leg in peninsula and the other in Sabah.
On the revenue issue Chia said it is becoming the norm for states to ask for part of their federal collected revenues to be returned.
Penang has also asked for 20pc revenue return and lately Johore even though they were part and parcel of Malaya in 1957, before Malaysia came into being in 1963.
He noted that Securities Commission Malaysia Executive Datuk Seri Awang Adek had also suggested during a conference that at least 50pc revenue collected from Labuan should be returned for development purposes.
Chia said with additional revenue Labuan would be able to close the socio-economic gap with the other FTs of Putra Jaya and Kuala Lumpur.
“Labuan will be able to have more projects and lift itself out of the economic doldrums,” he said.
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