DBKL rate hikes a major punch in the gut

comments     Khairul Khalid, KiniBiz     Published     Updated

KINIBIZ Kuala Lumpur City Hall’s (DBKL) recent announcement of an imminent assessment rates increase has sent shock waves that could be felt in the years to come. It will hit approximately 1.6 million residents and over 424,000 households in KL, not to mention the multitude of businesses operating in the city.

Suddenly these households and businesses, already squeezed by other increases on costs and expenses, are facing another major punch in the gut.

Many of them are staring at an astonishing rate hike of between 100 to 300 percent and in some instances even more. This would translate into exponential increases in assessment rates.

For example, a property owner who had previously paid RM500 in assessment would now conceivably have to pay up to RM2,000 or more under the new assessment. The increase could be palatable if household incomes and business revenues were also going up by the same levels, but in reality it is not.

The public is still reeling from spiralling costs of living, property prices and the announcement of the Goods and Services Tax (GST) to be implemented in 2015. This unwelcome news of a new assessment rate due to be implemented in January 2014 has led to a predictable uproar.

Property owners all over KL have been receiving notification of the new assessment in the past few weeks and to quote a resident, “been falling off our chairs” after reading the new valuation of their properties by DBKL.

There has been mass confusion especially over the quantum of the rate increase and the actual amount that needs to be paid.

A valuer has commented that the assessment hike is “too high and unrealistic”, adding that it would be difficult for DBKL to collect if the public is simply unable to pay.

Go to KiniBiz for the complete article .



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