PM: Recover the RM2bil in quit rent

The Star 9/11/2004

KUALA LUMPUR: State governments have been told to start improving their revenue collection methods to recover some RM2bil in quit rent, assessment and land premium arrears.

Making the call, Prime Minister Datuk Seri Abdullah Ahmad Badawi said that with the increased revenue the state governments could implement development programmes without depending too much on Federal aid and loans.

“There is no need to study the matter (collection methods) any more, just collect whatever taxes that are meant to be collected,” he said.

Speaking to reporters after chairing the National Finance Council meeting with Mentri Besars and Chief Ministers, he said the arrears from uncollected revenue had kept on increasing.

Abdullah, however, did not want to pinpoint which state had the highest or lowest amount of uncollected quit rent, assessment and land premiums.

He said he had also directed the state governments to submit proposals for the Ninth Malaysia Plan early so that these could be incorporated into the development plan.

Abdullah said next year was an important year for the Government to make preparations for the plan.

“When we implement the Ninth Malaysia Plan in 2006, we are already starting the second phase of the Vision 2020 plan, therefore our planning must be very meticulous to increase our capacity to develop.

“Whatever plans we present must have value-added qualities to successfully propel the country towards Vision 2020,” he said.

“The country’s financial standing is good, we have reduced our deficit and also increased our income, while the cost of living is still low,” he said.

He added that the only worry was the increasing oil prices, the impact of which had to be scrutinised further.