The Johor government will impose a new tax rate on about 130,000 foreign owners of property in the state, which varies from the rate imposed on local ownership.

Menteri Besar Mohamed Khaled Nordin said the move was to boost earnings for the local authorities while enhancing services to residents.

"The time has come for the state government to look at foreign ownership in the state because our people in other countries are also imposed a different tax rate.

"So, we are initially starting with the property tax rate," Khaled told reporters after visiting the Permas zone in Hihir Baru today.

 Khaled, who is also Permas assemblyperson, was confident that the local people would agree with the decision as it would provide returns for them, while foreigners must learn to appreciate their ownership of property in the state.

He also the state local authorities would re-assess the value of properties in their respective jurisdiction to determine the tax rate to be collected.

The last assessment was made in the 80s, he said, adding that the prevailing property value was now higher.

On the Permas zone, Khaled said RM4 million had been allocated to rehabilitate the area, besides sealing and widening existing roads and building new ones.

- Bernama