Section 46
of Malaysia Act
Section 46
(a)
the Federation shall make to the Borneo States in respect of each financial year the grants specified in Part IV of that Schedule; and
Malaysia 43
(b)
each of those States shall receive all proceeds from the taxes, fees and dues specified in Part V of that Schedule, so far as collected, levied or raised within the State, or such part of those proceeds as is so specified.
(2)
The amounts required for making the grants specified in the said Part IV, and the amounts receivable by a Borneo State under section 3 or 4 of the said Part V, shall be charged on the
Consolidated Fund; and the amounts otherwise receivable by a
Borneo State under the said Part V shall not be paid into the
Consolidated Fund.
(3)
In Article 110, Clauses (3a) and (4) shall not apply to a
Borneo State.
(4)
Subject to Clause (5) of Article 112d, in relation to a
Borneo State, Clause (3b) of Article 110—
(a)
shall apply in relation to all minerals, including mineral oils; but
(b)
shall not authorize Parliament to prohibit the levying of royalties on any mineral by the State or to restrict the royalties that may be so levied in any case so that the
State is not entitled to receive a royalty amounting to ten per cent ad valorem (calculated as for export duty).