THE 2024 State revenue is expected to decline due to uncertain geopolitical and economic climate, impacting the price of Petroleum Crude Oil (CO) and Crude Palm Oil (CPO) commodities in the global market, said Finance Minister Datuk Seri Masidi Manjun.
“Therefore, the State Government took a semi-conservative approach in preparing the 2024 Estimated Revenue so that the State Government’s financial position remains strong,” he said when tabling the 2024 State Budget at the State Legislative Assembly, here, Friday.
Last year, he said, the State Government once again made history when the revenue collection surpassed the amount of RM6.96 billion.
“As we are aware, the State revenue is largely dependent on CO and CPO commodities. For 2023, although the price of CO and CPO has decreased, the revised revenue estimate for this year is expected to remain at RM6 billion level, which is RM6.419 billion.”
He added, the 2024 Estimated Revenue is RM5.737 billion from three sources.
The first source of revenue is tax revenue of RM2.636 billion contributed by state sales tax (CJN) with RM2.490 billion, land rent (RM103 million), and port and harbour dues (RM42.5 million).
Secondly, it is non-tax revenue of RM2.372 billion comprising petroleum royalty with RM1.3 billion, sales of water (RM300 million), interest on cash balance and short-term deposits (RM201 million), land premium (RM150 million), dividend (RM143.7 million), and forest produce royalty and export on timber products (RM133 million).
The third source of revenue is non-revenue receipts of RM729.10 million comprising reimbursable, receipts and contributions from the Federal Government as well as other receipts.
“The State Government consistently remains attentive to the State’s revenue position. Based on the uncertain scenario and performance of revenue collection, various efforts and improvements are constantly planned, implemented and intensified to ensure the State’s revenue remains sustainable,” he said.
Among the efforts and actions undertaken are the implementation of State Sales Tax Special Voluntary Disclosure Programme by the Finance Ministry for the payment of two CJN products, namely fisheries commodities as well as scrap metal and waste taken out of Sabah.
“Therefore, I urge the relevant companies to voluntarily step forward for license registration and declare taxes in compliance with the State Sales Tax Enactment 1998.”
Aside from that, the State Government will explore potential new sources of revenue and continue the State’s claims with the Federal Government on Special Grants as stated in Part IV, Tenth Schedule of the Federal Constitution.
“The vision of every leader is to improve the people’s quality of life.
“However, without sound financial resources, our plans will be futile,” he said.
Therefore, he said, the State Government consistently identifies, plans and implements diverse measures and ways to enhance revenue and strengthen the financial position of the State.
“I would like to take this opportunity to urge all parties involved to take on their responsibilities wholeheartedly in every role and task that have been entrusted. Let’s shoulder these responsibilities together with dedication and courage, aiming to confront challenges and attain a strong financial position for the State,” he said.
