GEORGE TOWN: Chief Minister Chow Kon Yeow wants the federal government to return 20 per cent of taxes collected from Penang so that the money can be used for various programmes and projects to further boost development in the state.
Answering to a supplementary question from Gooi Hsiao-Leung (PKR - Bukit Tengah), Chow said if the state could get back 20 per cent of the taxes collected from Penang, this would mean an additional income of more than RM1 billion annually.
He said the money could be used to boost transportation links, the services sector, property and recreation.
As such, he said, there was a need to review the tax distribution for states.
"We want the federal government to return 20 per cent of taxes collected from Penang back to the state, besides the project announced by the federal government.
"Every year, Penang contributes between RM7 billion and RM8 billion in taxes to federal coffers, besides other taxes. So, if we can get back 20 per cent from the amount, that will be about RM1.6 billion annually.
"The money can be put to good use to further develop Penang and fulfil the various requests by the people.
"That is our hope. We (Penang) too yearn to implement many more programmes and projects for the people," he said.
Chow's proposal was met with overwhelming support from members in the august house.
Earlier, Gooi had asked what steps the state government were taking to collaborate with the federal government to develop the state's talent pool and small-medium entrepreneurs.
Chow said with the additional funds there were more things the state could set out to do.