Penang’s newly awarded status as a city won’t lead to a hefty hike in assessment rates, said state executive council member Chow Kon Yeow.

 

He said the legal provisions for the hikes on assessment rates are very clear, that the annual value can be reviewed every five years, while the rates can be reviewed on an annual basis.

 

He noted that the last annual value was revised in 2005, and the next should have been done in 2010 but that did not happen.

 

"It is now 2015, but the government has not decided to review it yet," said Chow, whose portfolio oversees local governance, including the work of the new Penang Island City Council (MBPP).

 

"We announced a (slight) increase in the rates last year, after taking much into consideration. We decided not to create a sizeable additional financial burden on rate payers," Chow explained in an interview recently.

 

"With or without city status, we do not foresee any hefty hikes in assessment. Increases would be a normal process but we have not raised it for many years," he added.

 

Last year's new rates included a minimal hike of 0.5 to 1 percent for most (80 percent) categories which did not affect kampung houses, associations and agricultural land.

 

However, opposition leader BN's Jahara Hamid had criticised the state for raising the rates, saying it did so because the local government was operating ineffectively.

 

Accompanying Chow at the interview was new MBPP mayor Patahiyah Ismail, who took on the new role after having served the Penang Municipal Council (MPPP) since 2010.

 

On Jan 1, MPPP was upgraded to a city council (MBPP). The official ceremony tomorrow will be attended by the Penang governor Abdul Rahman Abbas ( left ).

 

 Chow was replying to a question on whether there would be a raise in assessment fees after the island was upgraded to city status.

 

Chow said Penangites would understand why

 

Should assessment rates be increased, Chow said the people would understand as the MBPP has to upgrade its services to cater to the ever-increasing needs and demands of the people.

 

Upgrade in such areas covers improved services in infrastructure, environment and living standards, Chow said.

 

"When the people see all these improvements they can appreciate why they have to pay more."

 

MBPP has also introduced landscape, heritage, solid waste management, and public sanitation departments. These were formerly just units under the various sections in MPPP.

 

MPPP and its counterpart in Seberang Perai Municipal Council (MPSP) have been running the local authorities in the island and mainland respectively since 1974.

 

Chow said other than assessments, the MBPP relies on other fees such as parking and from of development approvals for revenue to fund its services.

 

"With every development approval, there will be contributions from the developer for infrastructure improvement.

 

"These provide additional source of revenue for the council to carry out more social projects to improve amenities in the city," he added.

 

Chow also hoped that city status would draw investors to the island. “Every factory that operates here pays assessment fees, and that is added revenue for the state," he explained.