KUCHING: Sarawak's revenue collection is expected to reach RM14 billion this year, surpassing the RM13.3 billion collected last year, Premier Tan Sri Abang Johari Openg said in his 2025 State Budget speech.
He said that, as of October this year, revenue collection stands at RM12.2 billion, or 87 per cent of the projected total for the year.
"Based on the current performance, our revenue collection for this year is expected to be almost RM14 billion," said Abang Johari, who is also the Finance and New Economy Minister, while tabling the 2025 State Budget in the State Legislative Assembly today.
"This will be yet another record-breaking achievement, setting the highest revenue collection in Sarawak's history," he added.
He said that the RM12.2 billion in revenue so far is primarily from the sales tax (RM4.4 billion), cash compensation in lieu of oil and gas rights (RM2.7 billion), dividends (RM2 billion), interest and returns from investments (RM1 billion), raw water royalties (RM554 million), forestry (RM214 million), and federal grants and reimbursements (RM554 million).
The Premier also said that the state is projected to collect RM14.2 billion in 2025, the highest revenue projection in history, highlighting the state's strong commitment to enhancing fiscal sustainability.
He outlined that the major sources of the estimated revenue would include tax revenue amounting to RM6.2 billion, or 44 per cent of the total expected revenue for 2025.
This tax revenue will consist of RM5.1 billion from the state sales tax, including RM4.1 billion from crude oil, liquefied natural gas, and other petroleum products; RM820 million from crude palm oil and crude palm kernel oil; RM75 million from the lottery; RM60 million from aluminium products; RM29 million from timber products; and RM6 million from coal.
The raw water royalty is expected to contribute RM620 million to the estimated revenue, while RM100 million is expected from forest royalties, timber premiums, and tariffs, and RM422 million from mining royalties, land rents, and other sources.
The Premier also mentioned that non-tax revenue is estimated to contribute RM7 billion, or 49 per cent, mainly from cash compensation in lieu of oil and gas rights (RM2.7 billion), dividend income (RM2.9 billion), interest income (RM853 million), land premiums (RM400 million), and cash compensation in lieu of import and excise duties on petroleum products.
He added that the non-tax revenue receipt is expected to be RM32 million, primarily from unclaimed deposits, overpayments recovered, and the disposal of vehicles.
Abang Johari also said that federal grants and reimbursements are projected to reach RM937 million.
He added that the contribution from this source has increased due to the federal government's decision to raise the interim special grant rate from Sarawak from RM300 million to RM600 million, effective next year.