Malaysia

Major tax contributor Penang seeks bigger federal allocation

Putrajaya should consider increasing amount to RM1 billion from present RM241 million, says CM

Updated 5 years ago · Published on 19 Oct 2020 10:12PM

Major tax contributor Penang seeks bigger federal allocation
Chief Minister Chow Kon Yeow says Penang got only RM195.1 million in annual grants between 2017 and June 2018, while Universiti Sains Malaysia received RM525 million last year. – Facebook pic, October 19, 2020

by Ian McIntyre

GEORGE TOWN – Seeing that Penang has remitted RM94.7 billion to the federal government, it is only fair that the state gets more allocation from Putrajaya, said Chief Minister Chow Kon Yeow today.

He said Penang has received only RM241 million through the annual per capita contribution based on population numbers.

The allocation includes assistance to fight Covid-19, and for repairs to roads and utilities.

Chow said Putrajaya should consider increasing the amount to RM1 billion for Penang in view of the state’s contribution through taxes and duties.

It has been reported that the state is the fourth-highest tax contributor to the federal government.

“Penang appreciates some of the funding, but the allotment is not as high as what the state gives to the country,” said Chow.

Drawing a comparison, he said Universiti Sains Malaysia received an allocation of RM525 million last year, while Penang got only RM195.1 million in annual grants between 2017 and June 2018.

The state’s application for RM10 billion in federal funding for its light rail transit system was rejected in June. – The Vibes, October 19, 2020

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