KOTA KINABALU: The Sabah Legislative Assembly has passed sweeping amendments to the State Sales Tax Enactment 1998 that strengthen collection and enforcement, among others.

This came amid concerns by assemblymen over a clause to limit judicial review of its collection powers.

State Finance Minister Datuk Seri Masidi Manjun said the amendments were to remove any grey areas and put in place a proper tax collection system to benefit taxpayers and tighten any loopholes.

Speaking at the winding up of the debates on the 37 amendments on Tuesday (July 8), Masidi said the state had sought the help of tax consultants from Kuala Lumpur as well as the advice of the Sabah Attorney General in drafting the amendments.

During the debates, nominated assemblyman Datuk Yong Teck Lee (GRS) raised a concern that the amendment to restrict judicial review powers could be unconstitutional.

Yong was questioning part of the amendment that read “in any proceedings under this section, the court shall not entertain any plea that the amount of State sales tax, penalty and surcharge sought to be recovered is excessive, incorrectly assessed, under appeal or incorrectly increased under sections 14, 14A, paragraph 18(a) or 18(b).”

“To me, this law is standing on shaky ground.

“Even if we pass it today, it’s shaky. Why? Last week, the Federal Court struck down a part of the Peaceful Assembly Act because it was unconstitutional.

“I do not believe that our state assembly can limit judicial review,” Yong said.

In response, Masidi gave an assurance that the power of the court – and in this context, judicial review – will always be there and cannot be precluded by any law.

“In this amendment, we have an appeal tribunal if someone is not satisfied. This amendment has become more transparent.

“If (anyone is) unhappy, they can go to the tribunal court,” he added.

State Opposition leader Datuk Seri Mohd Shafie Apdal (Warisan-Senallang) asked if this would further burden the people, as some of the amendments could add costs that trickle down to end consumers.

He also asked that the state pursue the matter of getting 40% of federal tax revenue under the Malaysia Agreement 1963 (MA63) returned to Sabah instead of implementing stringent state taxes.

Datuk Jannie Lasimbang (PH-Kapayan) said many of the amended clauses, including the one concerning judicial review, needed clarification.

Jamil Hamzah (Warisan-Bugaya) was concerned about possible overlapping and multi-layered taxes, while Datuk Darell Leiking (Warisan-Moyog) wanted to know if these amendments would result in taxpayers and consumers paying more for products and services, as well as taxes.

Masidi stressed that these 37 amendments were drafted thoroughly to ensure better management and collection of taxes.

It is meant to increase tax revenue collection and ensure that all processes are conducted with transparency, accountability and strictness, he added.

It also ensures that taxpayers’ rights are heard and protected, he added.