KOTA KINABALU: Sabah is looking to expand its state sales tax (SST) to cover gold under its Budget 2025 tabled by state Finance Minister Datuk Seri Masidi Manjun on Friday.
Tabling a RM6.421bil surplus budget, Masidi said this was among the various initiatives planned by the state to boost its revenue next year.
He said the state was always exploring new sources of revenue to enhance collection.
The Sabah government, he said, had introduced two SSTs earlier in April this year, namely on silica sand/silica and palm oil biomass products exported from the state.
“Additionally, the Sabah government will diversify its revenue sources by imposing SST on gold in due course,” he told the Sabah State Legislative Assembly here.
“Revenue is the main driving force for implementing and facilitating the operational expenditure and the state’s development programme and project.
“With better revenue collection, the state's financial position will remain strong and stable,” Masidi added.
Earlier, the Minister said 2025 Sabah Budget, themed “Prosperous Sabah, Prosperous People”, was the first time the state has proposed the “highest-ever estimated supply expenditure in history”, amounting to RM6.421bil.
At the same time, he said, the state estimated a revenue of RM6.445bil next year.
“Nevertheless, the 2025 State Budget still records a surplus of RM24.08mil.
“The stability of the economy and prosperity of the people are two closely related factors, as the level of economic progress will influence the standard of living of the people,” he said.
Masidi said the state expected a large chunk of its income to be derived from tax revenue of RM2.744bil, mainly contributed by its SST of RM2.597bil, land rent RM108mil as well as port and harbour dues of RM39.5mil.
He said the next biggest revenue is from non-tax revenue of RM2.551bil, comprising main contributors such as petroleum royalty amounting to RM1.297bil; interest and proceeds from investments (RM512.47mil); sales of water (RM304mil); land premium (RM152mil and; forest produce royalty and export on timber products (RM134.5mil).
At the same time, he added, non-revenue receipts, comprising receipts and contributions from the Federal Government, are estimated to bring in RM1.15bil.
In preparing the 2025 State Budget, Masidi said, the Sabah Government has formulated several strategies to face economic uncertainty next year.
He said for facilitating and enhancing the state’s administration, RM5.441bil was allocated for operating expenditures and RM980mil for contributions to the Development Trust Fund.
“The allocation for operating expenditures in 2025 increased by RM719.90mil, equivalent to 13% compared to 2024 initial estimates of RM5.701bil, which covers emolument, recurrent and special expenditure.
“A total of RM903.91mil is allocated for emolument expenditure to finance the salary of state civil servants.
“This amount recorded an increase of RM95.85mil, or 12%, compared to last year, due to an increase in annual salaries,” he said.
Masidi said the state government will focus continuously on ensuring the development of the three main sectors driving the state’s economic growth namely agriculture, industrial and tourism with an allocation of RM838.42mil.
He said the government will intensify its efforts to develop the agricultural sector with an allocation of RM610.85mil, with the state Agriculture, Fisheries and Food Industry Ministry to be allocated RM521.37mil next year.
“The Department of Agriculture which is allocated a total of RM138.49mil will focus on programmes and activities that align with the needs of the Food Security Policy and the Third Sabah Agricultural Policy.
“This is to ensure sufficient food supply chains, reduce dependency on food imports, guarantee the well-being of the people and address global challenges,” he said.
On human capital development, Masidi said the state will for the first time introduce a one-off RM300 contribution per student under the Higher Education Students in Sabah (Sentosa) programme next year.
As for poverty eradication, he said, the state government will assist the affected group identified under poor and hardcore poor brackets through monthly special assistance of RM300 for a year under the Sentuhan Kasih Rakyat programme, with a total allocation of RM358.5mil.
“The assistance is also intended to ease the financial burden over a specified period, thereby providing them with an opportunity to adjust and explore alternative means to increase their earnings,” he said.
