KUALA LUMPUR, Jan 7 — Sarawak will get its share from half of the tourism tax collected in the state, the Finance Ministry said today despite a public spat.
Finance Minister Lim Guan Eng said the federal government would pay out the tourism tax revenue to states regardless of outstanding debts owed by state governments.
“This means Sarawak will still receive the Tourism Tax Revenue payment although Sarawak still owes RM2.5 billion with debt arrears of almost RM50 million to the Federal Government,” he said in a statement today.
Lim addressed “false allegations” that Sarawak had been discriminated as it had yet to receive its portion of the tourism tax revenue, pointing out this was untrue as the federal government had yet to make such payments to any states.
“If the Sarawak state government still wants to prolong this matter based on false accusations that are defamatory, it will raise doubts towards their sincerity in working with the Federal Government.
“Instead, such actions would be seen as politically-motivated to plant hatred towards the Federal Government,” he added.
In the same statement, Lim sought to clarify matter by stating that the federal government will only distribute 50 per cent of the tourism tax collections to the respective state governments after the 2018 accounts are finalised.
Lim said payment would be made within the first quarter of 2019.
He also said that state governments were, according to the Federal Constitution, not entitled to the revenue from the tax that was paid to the federal government, but assured that the payments would be made as announced in the Budget 2019.
“However, based on respect by the federal government towards the states, this distribution of 50 per cent of these tax revenues will be given as stated in Budget 2019 on November 2, 2018,” he said.
