Penang approves 'slight increase' in land rates
Susan LoonePublished: Nov 24, 2014 7:47 AM | Updated: Nov 24, 2014 7:58 AM
The Penang executive council has announced its decision to approve an increase of assessment rates for 2015 made during its meeting in September, following seven meetings with the two local councils.
The Penang executive council has announced its decision to approve an increase of assessment rates for 2015 made during its meeting in September, following seven meetings with the two local councils.
However, state cabinet member Chow Kon Yeow said it was only "a slight increase" so as to not increase the financial burden of the ratepayers.
With the new rates, a majority of house or flat owners would face an increase of between less than RM10 to less than RM50 come Jan 1.
85 percent of owners of landed properties and 81 percent of owners of flats and condominiums are to pay a hike of assessment rates less than RM50.
Meanwhile, owners of low and low medium cost flats have to pay an increase of assessment rate of less than 10 only.
Those outside these categories will have to pay higher rates of more than RM10 and more than RM50.
This represents a 1 percent increase for owners of landed properties and apartments/ condominiums, while and 0.5 percent for low and low medium cost flats.
For business, industries and hotels, the increase is at 1 percent only, similarly for development land in the northeast and southwest districts are also at 1 percent.
'No increase in 10 years'
Chow said there will be no increase in rates for kampung houses, associations and agricultural land.
Golf clubs and the Penang Turf club meanwhile sees the largest increased rate at 4.45 percent.
The increase imposed by the two local councils, Penang and Seberang Perai, comes four months ahead of the federal government's implementation of the Goods and Services Tax.
"The state government has considered the fact that the local councils have not increased assessment rates for the last 10 years since 2005," Chow said during a press conference.
"We have also considered the fact that many local councils have indeed revised their valuation lists and imposed higher assessment rates since this year," he added.
"The increase in assessment rates would bring in additional revenue necessary to meet the higher operational costs to provide better services to the people and to carry out the necessary development projects to improve basic amenities," he explained.
To justify the increase, he provided the media with a list of development projects and related costs that need to be completed by the end of 2015.
Chow said Penang Municipal Council (MPPP) hopes to obtain additional revenue of RM 20.46 million, while Seberang Perai Municipal Council (MPSP) will receive about RM20.49 million.
2005 valuations maintained
Accompanying Chow at the press conference were MPPP secretary Ang Aing Thye and MPSP president Maimunah Shariff.
Chow added that while the rates have been increased, the state has rejected the request by the two local councils to review the valuation list according to section 137(3) of the Local Government Act.
"The state government has decided that the existing valuation list, used since 2005, be extended," Chow said when asked if they expect the public to protest the rate increase.
However, state cabinet member Chow Kon Yeow said it was only "a slight increase" so as to not increase the financial burden of the ratepayers.
With the new rates, a majority of house or flat owners would face an increase of between less than RM10 to less than RM50 come Jan 1.85 percent of owners of landed properties and 81 percent of owners of flats and condominiums are to pay a hike of assessment rates less than RM50.
Meanwhile, owners of low and low medium cost flats have to pay an increase of assessment rate of less than 10 only.
Those outside these categories will have to pay higher rates of more than RM10 and more than RM50.
This represents a 1 percent increase for owners of landed properties and apartments/ condominiums, while and 0.5 percent for low and low medium cost flats.
For business, industries and hotels, the increase is at 1 percent only, similarly for development land in the northeast and southwest districts are also at 1 percent.
'No increase in 10 years'
Chow said there will be no increase in rates for kampung houses, associations and agricultural land.
Golf clubs and the Penang Turf club meanwhile sees the largest increased rate at 4.45 percent.
The increase imposed by the two local councils, Penang and Seberang Perai, comes four months ahead of the federal government's implementation of the Goods and Services Tax."The state government has considered the fact that the local councils have not increased assessment rates for the last 10 years since 2005," Chow said during a press conference.
"We have also considered the fact that many local councils have indeed revised their valuation lists and imposed higher assessment rates since this year," he added.
"The increase in assessment rates would bring in additional revenue necessary to meet the higher operational costs to provide better services to the people and to carry out the necessary development projects to improve basic amenities," he explained.
To justify the increase, he provided the media with a list of development projects and related costs that need to be completed by the end of 2015.
Chow said Penang Municipal Council (MPPP) hopes to obtain additional revenue of RM 20.46 million, while Seberang Perai Municipal Council (MPSP) will receive about RM20.49 million.
2005 valuations maintained
Accompanying Chow at the press conference were MPPP secretary Ang Aing Thye and MPSP president Maimunah Shariff.
Chow added that while the rates have been increased, the state has rejected the request by the two local councils to review the valuation list according to section 137(3) of the Local Government Act.
"The state government has decided that the existing valuation list, used since 2005, be extended," Chow said when asked if they expect the public to protest the rate increase.
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