ALOR SETAR: Kedah Menteri Besar Mukhriz Mahathir has suggested that the federal government look for a new method to distribute the federal tax revenue fairly to all states, especially those with low income.
He said according to the federal system, the federal government would collect taxes from numerous sources nationwide before sharing the revenue with the states.
“Kedah has the lowest income, we don’t have oil or gas, so we don’t get any royalty payment. We only have forests, but even then, logging is not permitted. We understand this matter and want to manage the state’s natural resources sustainably.
“Thus, I would like to suggest that the new federal government fairly distribute tax revenue for the benefit of all, especially to low-income states like Kedah,” he said after receiving a courtesy call from Rural Development Minister Rina Mohd Harun at his office in Wisma Darul Aman.
Prior to this, the menteri besar said they had to beg for assistance and most poor states were forced to take loans from the previous federal government, causing the states to be plagued with debts and unable to contribute to state development.