Four key bills on tax, climate and forests to be tabled in two-day Sabah sitting

THE Sabah State Assembly will convene a two-day sitting from today, with lawmakers expected to table four significant bills, including amendments to the state sales tax law and new legislation on climate change and carbon governance.

State Assembly Speaker Datuk Kadzim Yahya confirmed that the session will also include a supplementary supply bill and a forestry bill, setting the stage for what could be the penultimate sitting before the next state election.

Finance Minister Datuk Seri Masidi Manjun had earlier revealed plans to amend the State Sales Tax Enactment to allow oil and gas companies to appeal tax assessments they believe are unjust. 

The move is aimed at improving transparency and creating a more business-friendly environment for investors in the petroleum sector.

“We want to ensure that companies that feel they’ve been taxed unfairly have a formal channel to appeal.

“They can go to a tribunal to ensure there’s justification and fairness in how we collect revenue,” he said recently. 

The amendment is also expected to tighten governance within the state’s tax collection system, addressing concerns from the industry while safeguarding public funds.

Meanwhile, the introduction of a bill on climate change and carbon governance signals the state government’s intention to build a legislative framework around emissions control, environmental protection, and carbon trading, areas that have grown in significance as Sabah explores sustainable development options and carbon credit markets tied to its vast forest resources.

The forestry bill, although not detailed yet, is likely to complement these efforts, as Sabah continues to grapple with balancing logging activity, forest conservation, and indigenous land rights.

The sitting will also debate a supplementary supply bill, typically tabled to cover additional government expenditure beyond what was approved in the annual budget.

The upcoming sitting marks the fourth time the GRS-led Sabah government is tabling a supplementary supply bill since taking office in 2020.

Previous allocations were approved in 2020, 2022, and 2023, with the most recent amounting to RM833 million.

These additional budgets were primarily aimed at addressing urgent needs such as pandemic relief, infrastructure repair, and water supply issues.

The current assembly sitting is widely seen as the last before the state election.

The present assembly will automatically dissolve on November 11, unless Chief Minister Datuk Seri Hajiji Noor opts for an earlier dissolution. - July 7, 2025