Johor MB renews appeal for state to receive 20% tax revenue return

ISKANDAR PUTERI: Johor Mentri Besar Datuk Onn Hafiz Ghazi has appealed to the Federal government to return 20% of the tax revenue collected to the state.

In his winding-up speech during the state assembly sitting in Kota Iskandar, Onn Hafiz stated that this request is vital to ensure comprehensive development in the state.

He then said that in line with the decree of Johor Regent Tunku Ismail Sultan Ibrahim the Johor state government is appealing once again to the Federal government to consider allocating at least 20% of the tax revenue collected from Johor back to the state.

He added that this is a crucial step to ensure that the people of Johor continue to benefit from the state's resources.

Onn Hafiz then said that this allocation would ensure that Johor's development can proceed more comprehensively for the well-being of both current and future generations.

In June this year, the Johor Mentri Besar made a similar request but asked for a higher percentage.

At that time, he stated that the Johor state government would like to appeal to the Federal government for at least 30% of the tax revenue collected from the state to be returned to Johor to enable better development.
https://www.thestar.com.my/news/nation/2024...-revenue-return

Why not?

In the US, every state collects its own income tax and sales tax.

But for simpler implementation, Federal can collect on behalf of the states.

Penang used to have the country's tallest building, i.e. Komtar. But now all top 3 are in KL.

Dude, tax revenue return is not the same as allocation.

Tax revenue return is fixed. Allocation is at the whim of the Cabinet.