Rafizi Questions Pas Call To Collect Kelantan S Own Taxes

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KUALA LUMPUR: Although reportedly on an extended leave, Economy Minister Datuk Seri Rafizi Ramli remains active in responding to issues raised by the opposition via his official social media platforms.
In his latest Facebook post on Saturday (May 3), Rafizi addressed opposition claims regarding federal tax collection, dismissing allegations that the federal government marginalised opposition-led states like Kelantan in revenue distribution as recycled rhetoric by PAS and Perikatan Nasional to fuel anti-government sentiment.
"PAS and Perikatan's effective campaign tactic involves accusing the federal government of sidelining them - claiming taxes collected from opposition states aren't returned as development funds.
"The narrative escalated to Pasir Putih MP (Datuk Dr Nik Muhammad Zawawi Salleh) demanding PAS be allowed to collect Kelantan's taxes currently managed federally,” said Rafizi, who is also PKR Deputy President.
Rafizi clarified that federal taxes comprised business and individual income taxes or sales taxes linked to commercial activity, questioning Kelantan's capacity to independently collect equivalent revenue.
"If Kelantan were to collect its own taxes as incited by PAS, would that solve the state’s development issues? Would the KB Sentral bus terminal be completed? Would the water supply problem be resolved?
"What is the actual estimated tax revenue from Kelantan, if the state were to collect those taxes itself?" he asked.
Rafizi said if the Kelantan government failed to create an investment-friendly business environment and generate quality, well-paying jobs, it was uncertain whether the state could ensure prosperity for its people.
"Even if they were to collect the taxes currently under Federal jurisdiction, the revenue might not be sufficient to cover the state’s development expenditure, which is now being borne by the Federal Government.
"That is why it is better to compete through our expertise in driving economic growth, rather than playing on sentiment by inciting the notion that the Federal Government is victimising opposition-led states,” he said. - Bernama

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