Dr Sim (fifth right) flanked by Ahmad (fourth right) and Lo (sixth right) and others tossing the ‘yee sang’ during the MPP Chinese New Year gathering.
KUCHING: The Ministry of Local Government and Housing will request for RM60 million from the Sarawak government to help local councils affected by the revenue shortfalls.
Its minister Datuk Dr Sim Kui Hian said he would submit a cabinet paper requesting the Sarawak government for the amount so that all the councils and councillors can do better, interact more with the community and conduct more activities with the community.
He said many councils in Sarawak were experiencing a revenue shortfall following the Sarawak government’s decision to bring down the residential property assessment rates.
On April 27, 2016, the late Pehin Sri Adenan Satem, then chief minister, announced that the Sarawak government had reduced the residential property assessment rates to help the people cope with the rising cost of living.
Dr Sim noted that the Padawan Municipal Council (MPP), for instance, registered RM6 million less in revenue per year following the reduced assessment rates.
“The government’s decision to reduce assessment rate affects 98 percent of the 64,000 houses in MPP.
“These houses are either paying reduced assessment rates or did not pay anything at all but they still get functioning street lights and their rubbish collected.
“Not only that, MPP is also providing 24 hours, seven days a week service to the community,” he said at the MPP Chinese New Year gathering here yesterday.
Dr Sim said he requested the funding now because the Sarawak government is going to have extra revenue from the sales tax of oil and gas products.
He said Sarawak is fortunate because its State Legislative Assembly (DUN) sitting was able to pass the five percent sales tax on oil and gas products, which will bring about RM3.9 billion revenue to state.
He said as there will more than RM3 billion extra revenue from sales tax of oil and gas products every year, asking for RM60 million for the councils is not too much.
“We need to help the local councils that are facing shortfalls in revenue. We want to give the community the best service,” he said.
Dr Sim said he would try to ask for that RM60 million because if five percent sales tax on oil and gas products is not enough, Sarawak “could go up to 10 per cent”.
“Sarawak oil and gas is not Sarawak government’s oil and gas; this is the right of every Sarawakian.
“When the funding is channeled to the councils, it is for the benefits of Sarawakians,” he said.
Batu Kitang assemblyman and MPP chairman Lo Khere Chiang along with MPP deputy chairman Dato Ahmad Ibrahim were also present.
Borneo Post, 1 March 2019