PETALING JAYA: Elected representatives in Selangor and Penang have spoken up about unfair federal budget allocations for their states, which are among the highest contributors of revenue.
Penang assemblyman Gooi Hsiao Leung said many states also shared the Johor sultan’s recent expression of discontent toward federal funding allocations.
“Every state should have its fair share of financial support to develop according to its own aspirations, without being held ransom by the federal government, regardless of which party is in power,” he said.
Gooi, who represents Bukit Tengah, said a report by the Penang Institute showed that Penang contributed RM5.7 billion in tax revenues to the federal government in 2013 but only received RM162.7 million in federal transfers.
Excluding the capitation grant, the figure was only 2.85% of the revenue generated by Penang, he said.
Selangor assemblyman Ng Sze Han of Kinrara said Selangor did not receive a fair allocation despite being the biggest contributor towards the national GDP .
He said Selangor had the highest population among all states and its citizens worked hard to pay their taxes, most of which went to the federal government.
“There is room for the federal government to distribute more allocations for Selangor, like flood mitigation projects and waste management.”
Klang MP Charles Santiago said almost every state had complained about unfair federal allocations.
“Selangor’s contribution is extremely high but what it gets back is peanuts,” he said, adding that the ports in Klang alone were large sources of revenue.
He said many projects such as the upgrading of roads in Port Klang were suffering due to a lack of money.
He suggested that three layers of taxes be created, between local councils, state governments and the federal government. However, the tax structure would have to be overhauled, he said. - FMT
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