Economy minister Rafizi Ramli has dismissed a call by an MP from Kelantan to allow the PAS-led state government to collect taxes, suggesting it would not bring about the development it desired.
In a social media post, Rafizi pointed to the water woes affecting the state, and the unfinished state of construction of an integrated bus terminal.
He also wondered how much revenue Kelantan could amass and whether development-related issues would be resolved if the state was allowed autonomy in taxation, a power granted to the federal government under the constitution.
Rafizi’s remarks were in response to Pasir Putih MP Nik Muhammad Zawawi Salleh who made the demand for state power to collect taxes.
The economy minister said the federal government collected revenue from taxes on business and individual incomes as well as from sales tax, which was related to a vibrant economy.
He said there was no guarantee that the state could bring about prosperity if the state government failed to provide an investment-friendly environment, which would lead to job creation and high income.
“It would be better to focus on stimulating the economy instead of fanning sentiments that the federal government was victimising opposition-led states.”
