Property owners in Penang will heave a sigh of relief today.

This comes with the state government announcing a six percent exemption in property assessment rate, across the board, for the people to overcome the burdensome six percent goods and services tax (GST).

In making the announcement, Chief Minister Lim Guan Eng said this will reduce the people’s financial burden due to the GST which was imposed by the federal government in April 2015.

“The exemption is for all residents living in low and low-medium cost houses, including those who live in the kampung and in landed properties,” Lim said when tabling the state’s 2017 Budget in the State Legislative Assembly today.

Lim said the total exemption for this segment of house owners would amount to RM14,093,705.78.

He noted that the assessment collected for 2017 by the Penang Island City Council(MBPP) amounted to RM8,058,628.78, while the Seberang Perai Municipal Council (MPSP) collected RM6,035,077.

Apart from this, Lim said, the state government had to absorb RM46.2 million, which is to be paid out to the federal government as GST.

“The state government has instructed MBPP and MPPP to absorb RM19.36 million for GST for this year.

“This also means that Penangites will save RM19.36 million from paying GST,” he added.

Lim said MBPP and MPSP will bear the burden of RM33.45 million with the six percent exemption in assessment rates for low-cost and low-medium cost houses, totalling RM11.7 million, and the 19.36 million GST.

The six percent exemption in assessment rates also applies to commercial properties.

Those who own MBPP properties will save a total of RM11,829,732.70 and RM9,907,892.00 for those who own MPSP properties, he said.

“For those who do not own low-cost or low-medium cost houses, the six percent exemption in assessment rates will incur a burden of RM21.74 million for MBPP and MPSP, and the people will save RM55.19 million because of the benevolence of the state,” Lim added.