THE Penang government is trying its best to minimise the impact of the new annual assessment tax.
Chief Minister Chow Kon Yeow said the local councils would wait until the end of the objection period (Oct 14) and the hearing of the appeals by both Penang Island City Council (MBPP) and Seberang Perai City Council (MBSP) before making a decision.
“We’re very prudent in keeping the impact to a minimal level. We expect 10 to 20% of the ratepayers to appeal. That is normal,” Chow told a press conference in Komtar today while explaining the details of four categories of residential units affected by the assessment tax review.
“There is an increase in the respective property’s annual rental value following the assessment tax review after 15 years.
“The percentage of the assessment rate for the year 2020 has been reduced to minimise the impact.
“If the councils had maintained the existing percentage of the assessment rate, the impact will be very great because the annual value has increased quite substantially.”
At the press conference, Chow read out the amount of tax increased, affecting four types of residential properties for island and mainland – landed residence (low-cost and low medium-cost), landed residence, stratified residence (low-cost and low medium-cost) and apartments/condominiums.
He said from the figures, the increase in tax for residential units in Seberang Perai is less than RM100; whereas for the island, it might be impactful on some of the landed properties with tax increased by RM300, RM400 and RM500.
Chow added that the increase in tax for 31,355 (90%) low-cost and low medium-cost stratified premises in Seberang Perai is less than RM10.
For the low-cost and low medium-cost stratified premises on the island, 90,949 units will see an increase in tax of less than RM85. Chow said out of the 90,949 units, a total of 71,169 units will only see an increase of RM1.
“We want the discussion with the ratepayers to be more balanced by looking at the facts,” Chow explained.
A briefing session was organised by the Penang Chinese Chamber of Commerce (PCCC) at its premises yesterday (Oct 1). Among those present were state Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo, PCCC officials, MBPP and MBSP representatives.
The session was aimed at providing a better understanding among the stakeholders on the tax adjustment.
Story by Edmund Lee
Pix by Chan Kok Kuan
Video by Darwina Mohd Daud