KOTA KINABALU, July 14 — As discussions resume on the definition of "state revenue” in Sabah’s claim to its rightful 40 per cent revenue entitlement, Sabah is proposing that it be allowed to claim 40 per cent from undisputed taxes, such as income tax, in the meantime.Deputy Chief Minister Datuk Jeffrey Kitingan said the state government presented several solutions — including the interim proposals — during the Special Technical Committee meeting on the Malaysia Agreement 1963 (MA63) held with Deputy Prime Minister Datuk Seri Fadillah Yusof today.

"We have suggested implementing this 40 per cent on items that are not disputed, such as the taxes collected from the state as a temporary measure,” he said when speaking to reporters after the meeting.

He said these suggestions must not compromise the final decision on the issues involving the state’s claim to the 40 per cent Federal tax revenue return to the state as provided under Sections 112C and 112D of the Federal Constitution.

"We are asking for a clear solution that both the state and Federal governments can agree on — for example, to begin claiming 40 per cent of net revenue from undisputed taxes like income tax,” he said.

Kitingan, who heads the Sabah MA63 technical committee, said he hoped that the Federal government and the main MA63 committee would seriously consider the proposed solutions and interim arrangements put forward by the Sabah government.

The meeting, originally scheduled for June 30 and set to take place in Kota Kinabalu at the state’s request, was postponed to today because Fadillah was unable to attend on the earlier date.

The meeting today was focused on Sabah’s proposed solutions to the 40 per cent net tax revenue entitlement under Article 112C and 112D of the Federal Constitution and that the parties were seeking solutions beyond the court jurisdiction, taking into account an ongoing legal battle between the Sabah Law Society and the Federal government.

"There are constraints in making decisions that are under the court’s jurisdiction for the time being, so we must find solutions to areas outside the court’s jurisdiction,” said Fadillah.

He said that the suggestions from today will be conveyed to the Prime Minister for consideration, and whether they will be adopted as an interim measure.

Fadillah said that this another technical meeting would be followed up with another technical meeting with Sarawak. An MA63 action council meeting is scheduled to be held on September 12 in Kuala Lumpur.

The SLS court case e-review is set to be heard at the Kota Kinabalu High Court on August 7.