The Fund
(1) For the purposes of this Act a fund to be known as the “National Kenaf and Tobacco Board Fund” is established.
(2) The Fund shall be controlled, maintained and operated by the Board.
(3) The Fund shall consist of—
(a) such sums as may be provided by Parliament for the purposes of this Act from time to time;
(b) moneys earned by the operation of any project, scheme or enterprise financed from the Fund;
(c) moneys earned or arising from any property, investment, mortgage, lease, tenancy, charge or debenture acquired by or vested in the Board;
(d) any property, investment, mortgage, lease, tenancy, charge or debenture acquired by or vested in the Board;
(e) sums borrowed by the Board for the purposes of meeting any of its obligations or discharging any of its duties;
(f) moneys earned from consultancy and advisory services and any other services rendered by the Board;
(g) moneys collected or paid under section 84;
(h) moneys collected by the Board under the regulations made under this Act and specified therein as sums payable into the Fund;
(i) donations and contributions received from any organization within or outside Malaysia;
(j) all other sums or property which may in any manner become payable to or vested in the Board in respect of any matter incidental to its functions and powers; and
(k) all other moneys lawfully received by the Board.
Expenditure to be charged on the Fund
The Fund shall be expended for the purposes of—
(a) paying any expenditure lawfully incurred by the Board, including—
(i) the remuneration of the officers and servants of the Board, including the granting of loans, superannuation allowances, pensions or gratuities;
(ii) insurance coverage for the officers and servants of the Board;
(iii) costs incurred in providing for the welfare of the officers and servants of the Board;
(iv) allowances of the members and members of committees established under section 18; and
(v) legal fees and costs and any other fees and costs;
(b) financing research and development activities;
(c) contributing to bodies or organizations, whether within or outside Malaysia, of which the Board is a member or to such organizations related to the kenaf industry and tobacco industry as the Minister may determine;
(d) providing financial assistance to the kenaf planters or licensed curer with the approval of the Minister after consultation with the Minister of Finance;
(e) granting loans, scholarships, advances or grants, as the case may be, to any person, officers and servants of the Board or to institutions of higher learning within or outside Malaysia;
(f) granting loans or providing capital for companies established by the Board under this Act;
(g) paying any other expenses, costs or expenditure properly incurred or accepted by the Board in the performance of its functions or the exercise of its powers under this Act;
(h) subject to the approval of the Minister, making contributions to any organization, whether within or outside Malaysia, for the purpose of promoting the marketing of kenaf and kenaf products;
(i) purchasing or hiring equipment, machinery and any other materials, acquiring land and erecting buildings, and carrying out any other works and undertakings in the performance of its functions or the exercise of its powers under this Act;
(j) repaying any moneys borrowed under this Act and the interest due on such moneys;
(k) paying any reward under section 87; and
(l) generally, paying any expenses for carrying into effect the provisions of this Act.
Conservation of Fund
It shall be the duty of the Board to conserve the Fund by so performing its functions and exercising its powers under this Act as to secure that the total revenues of the Board are sufficient to meet all sums properly chargeable to its revenue account, including depreciation and interest on capital, taking one year with another.
Reserve fund
The Board shall establish and maintain a reserve fund within the Fund.
Cess Fund
(1) A Cess Fund to be administered and controlled by the Board is established.
(2) The Cess Fund shall consist of all cess collected under this Act.
(3) The Cess Fund shall be utilized for the following purposes:
(a) to provide technical and financial assistances to aid tobacco planters and workers, including those whose livelihoods are affected as a consequence of tobacco control programmes;
(b) to finance research and development on tobacco; and
(c) to finance any activity relating to tobacco controls.
Cess on tobacco and tobacco products
(1) The Minister may, after consultation with the Minister of Finance, make orders for the imposition, variation or cancellation of a cess on tobacco and tobacco products produced in or imported into Malaysia and the orders may specify the nature, amount and rate of the cess, person or class of persons on whom the cess is imposed and the manner of collection of the cess.
(2) The cess imposed by such order shall, for the purposes of its collection and for the enforcement of the collection thereof, be paid into and form part of the Cess Fund.
(3) An order made under this section may prescribe different amounts, rates and manner of collection for different types of tobacco and tobacco products in relation to different persons or different classes of persons.
(4) A person who fails or refuses to pay any cess imposed under this section commits an offence and shall, on conviction, be liable to a fine not exceeding ten times the amount of cess due or to imprisonment for a term not exceeding three years or to both.
(5) The amount of any cess imposed under this section shall be a debt due to the Board from the person on whom the cess is imposed and may be sued for and recovered in any court at the suit of the Board.
(6) The institution of proceedings under this section shall not relieve any person from liability for the payment of any cess for which he is or may be liable or from liability to make any return which he is required by this Act to make.
Expenditure and preparation of estimates
(1) The expenditure of the Board up to such amount as may be authorized by the Minister for any one year shall be defrayed out of the Fund.
(2) Before the first day of June of each year, the Board shall submit to the Minister an estimate of the expenditure (including the expenditure for research and development activities) for the following year in such form and containing such particulars as the Minister may direct.
(3) The Minister shall, before the first day of the month of January of the following year, notify the Board of the amount authorized for expenditure generally or of the amounts authorized for each description of expenditure based on the estimate prepared under subsection (2).
(4) The Board may at any time submit to the Minister a supplementary estimate for any one year and the Minister may allow the whole or any part of the additional expenditure included in the supplementary estimate.
Financial year
The financial year of the Board shall begin on the first day of the month of January and end on the thirty-first day of the month of December of each year.
Bank account
The Board shall open and maintain an account or accounts with such banks in Malaysia as the Board thinks fit, and every account shall be operated as far as practicable by cheques signed by any person as may be authorized by the Board for such purpose from time to time.
Statutory Bodies (Accounts and Annual Reports) Act 1980
The Statutory Bodies (Accounts and Annual Reports) Act 1980 [Act 240] shall apply to the Board.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
