Penang hikes assessment rates between 40 to 90 pct, Gerakan cries foul
The Penang government today announced a substantial increase in assessment rates - ranging from 40 to 90 percent - for properties on the island and mainland.
Penang executive councillor for local government and housing Jagdeep Singh Deo said the last review was in 2005, 15 years ago.
The Penang government today announced a substantial increase in assessment rates - ranging from 40 to 90 percent - for properties on the island and mainland.
Penang executive councillor for local government and housing Jagdeep Singh Deo said the last review was in 2005, 15 years ago.
"After this review, we are still lower than other local councils of similar standing," he said.
"Even with this increase, it is still not sufficient for planned projects," he added.
"The law requires a review every five years. Owners may put in their objections and will be given the right to be heard," he said.
At a press conference in George Town today, Jagdeep said Section 137(3) of the 1976 Town and Country Planning Act states that the MBPP and MPSP are supposed to revise the rates every five years or within a period fixed by the local authorities.
The current rates have been used since Jan 1, 2005 (for MBPP) and Jul 1, 2015 (for MPSP) has been used for 15 years and will be revised after December this year when the term for the current rate ends, he said.
"The Penang executive meeting on July 19 agreed to allow MBPP and MPSP to revise their current rates which have been imposed for 15 years without revisions," he said.
As of June 2019, house-owners paying an assessment to MBPP and MPSP were 322,549 and 327, 401 units respectively.
Jagdeep said revenue from the increase in the assessment rates will be returned to the people via development in the cities, cleaning and road works as well as improved amenities.
He said the revised rates were prepared internally by officers from the Evaluation and Property Management Department.
Based on Budget 2019, MBPP earned only about RM411.42 million compared to its RM506.03 million expenditure.
This made Budget 2019 a deficit budget of RM94.61 million, Jagdeep noted.
"Considering that MBPP's expenditure is increasing yearly and with its annual financial burden, the council needs to increase its income and revising the assessment rates is one way to do it," he said.
Meanwhile, Gerakan deputy president Oh Tong Keong said the state government’s move would only increase the people's financial burden.
"The Pakatan Harapan government made people's lives very hard. Therefore, the current increase of Penang's assessment rates is very unfair," Oh said.
He urged the Penang government to withdraw the increase if they were caring and sympathetic of the people.
He cited an example where a resident had to pay RM342 previously but with the latest adjustment, the assessment rate was now RM531, an increase of more than 55 percent.
"This is a very outrageous increase and many people can't afford it," said the Penang Gerakan liaison committee chief.
"You have always told the people that the government has made money. Therefore, in today's economic downturn, it is even more important not to raise the rates."
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