Boost Economic Activity In Kelantan To Get More Revenue Rafizi Tells Pas

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Economy Minister Rafizi Ramli challenged PAS to ramp up business activities in states under their control to prove they are better at managing the economy.
He criticised PAS for accusing the federal government of refusing to return the taxes collected from their states for development.
Taking Kelantan as an example, Rafizi said the amount of taxes Putrajaya collected from the state was lower than what they had allocated for Kelantan's development budget.
"Do you think if Kelantan were allowed to collect taxes like PAS suggested, Kelantan's development issues would be resolved?
"Will the KB Sentral bus station finally be completed? Will their water woes come to an end?
"Do you know how much Kelantan can get if they were to collect the taxes themselves?" he asked on Instagram.
Rafizi, who is currently on leave, was responding to PAS’ claim that Putrajaya had been sidelining their states from the federal budget.
He pointed out that PAS leaders such as Pasir Puteh MP Nik Muhammad Zawawi Salleh have even challenged Putrajaya to allow Kelantan to collect taxes themselves.
Still need Putrajaya’s help
According to Rafizi, even if Kelantan were allowed to collect taxes itself, the amount would not be sufficient to help the state government.
"The taxes that the federal government collects are business taxes and individual income tax, or sales tax, that are related to business activities.
"If the Kelantan state government fails to create an investment-friendly business environment, which would create high-income job opportunities, they won't be able to bring prosperity to their rakyat even if they get to collect all the taxes that are under the federal jurisdiction.
"This is because the taxes might not be enough to support the total development costs for Kelantan, which is currently being covered by the federal government.
"Thus, it would be better if we compete based on our expertise to spur the economy, instead of playing up sentiment by claiming that Putrajaya is victimising opposition states," he said. - Mkini

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