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 today, 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 (PN) to fuel anti-government sentiment.
According to BERNAMA News Agency, Rafizi highlighted the opposition’s campaign tactic, which involves accusing the federal government of sidelining them and claiming that taxes collected from opposition states are not returned as development funds. This narrative escalated when Pasir Putih MP, Datuk Dr Nik Muhammad Zawawi Salleh, demanded that PAS be allowed to collect Kelantan’s taxes that are currently managed federally.
Rafizi clarified that federal taxes consist of business and individual inc
ome taxes or sales taxes linked to commercial activity. He questioned Kelantan’s capacity to independently collect equivalent revenue and whether it would solve the state’s development issues. He raised concerns about whether projects like the KB Sentral bus terminal would be completed or if the water supply problem would be resolved.
He further questioned the actual estimated tax revenue from Kelantan if the state were to collect taxes itself. Rafizi argued that 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 currently being borne by the federal government.
Rafizi concluded that it is better to compete through expertise in driving economic growth, rather than playing on sentiment by inciti
ng the notion that the federal government is victimising opposition-led states.