The new annual rateable value (ARV) on all types of properties that all local authorities have announced is becoming a big issue that is blowing in the face of the Sarawak Government.

The ARV based on a survey carried out by estate valuer CH William, Talha and Yeo in 1996 represents an increase of 240 per cent on factory buildings, 250 per cent on residential buildings and 350 per cent on shophouse buildings.

This has drawn a hue and cry from all sections of the public and even from senior leaders of ruling political parties as well as from the opposition.

Worst, the local authorities have not even announced yet the percentage of the ARN that rate-payers will have to pay from Jan 1 next year as the new assessment rate on their properties.

Explanation necessary

Parti Pesaka Bumiputra Bersatu(PBB) Youth leader Douglas Uggah, who is also deputy minister in the Prime Minister's Department, said in a press statement that local councils should give a detailed explanation to the public on the basis on which the new ARV had been arrived at.

"An explanation is necessary since there is so much confusion among ratepayers," he added.

So much so that he would be leading a PBB Youth delegation to meet the state minister in charge of local government William Mawan to seek a clearer picture soon.

PBB Youth deputy leader Dr Abdul Rahman Junaidi said the local authorities had acted "rather hastily with too little time (given) for the public to appeal" when they released the new list of annual rateable value.

Last weekend, Parti Bansa Dayak Sarawak (PBDS) president Leo Moggie said the widespread unhappiness over the ARV issue was the main topic at the party's supreme council meeting that day.

He urged the local authorities to re-consider the basis for the new ARV, saying that rate-payers should be over-burdended unnecessarily at this time.

Review the basis

Their views were also shared by the Sarawak United People's Party (SUPP) state assemblyperson for Senadin Lee Kim Shin who urged the authorities to review the basis for the new ARV as he had discovered that in some localities the increase was very substantial.

Meanwhile, the Federation of Kuching and Samarahan Divisions Chinese Association in its press statement urged the government to defer implementation of the new ARV for next year.

In effect, the federation is asking local councils to defer any increase in annual assessment rates for the time being.

It added that the new ARV was arrived at in 1996 when the rental market was at its peak because of property marketing condition then.

It said it would be wrong to use the same ARV now as the basis for determining even a marginal increase in assessment rate when the rental property market is low.

In various statements within the last few days, Mawan, who is state minister of environment and public health and protem president of the newly-registered Sarawak Progressive Democratic Party (SPDP), said any increase in assessment rate would be marginal.

Second picket

Presently, the annual assessment rate is 21.5 per cent of the existing ARV for residential properties and 22 per cent for commercial properties. It is learnt that with the new assessment rate will be around nine to 10 per cent of the new ARV which would reflect a marginal increase, but in some localities the jump would be quite substantial.

Malaysiakini understands that the delay in announcing the percentage of the ARV as the new assessment rate is tied to the cost factor for the disludging of waste tanks which now forms part of the privatisation services undertaken by a company in which there is foreign equity interest.

The rates issue had also been discussed by the state cabinet.

Meanwhile, the Sarawak DAP held its second picket outside the Kuching City South Council building today to protest against the new rates.


TONY THIEN is malaysiakini correspondent based in Kuching, Sarawak.