AFTER reviewing the last assessment rates 15 years ago, the Penang Island City Council (MBPP) and Seberang Perai Municipal Council (MPSP) have decided to raise the rates next year.
The higher assessment rates include all types of properties in the state.
The announcement was made by state Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh, who stated the rates were reviewed in accordance with the Section 137(3) of the Local Government Act 1976.
He said the last rates were reviewed almost 15 years ago in 2005.
He said MBPP and MPSP have been recording an annual deficit budget since 2016.
He, however, said the state’s new assessment rates for 2020 would still be the lowest in the country compared with other states.
“It is still the lowest if we compare with other properties in Kuala Lumpur, Petaling Jaya, Shah Alam and Subang Jaya.
“The percentage of increase in Penang depends on the size of properties, location and type,” he said at a press conference in Komtar today.
Assessment rates can be paid twice a year by all property owners in the state.
Jagdeep said notices of the increase of assessment rates have been sent out to all property owners.
“We have given them an opportunity to submit their appeals to us until Oct 14,” he said.
Jagdeep also said the rate increase would garner an additional revenue for MBPP and MPSP next year.
He added that MBPP could expect to gain an additional RM54,338,822 while MPSP would see an additional RM39,743,077.02.
“Several infrastructure projects will be implemented by both councils between 2020 and 2022,” he said.
MPSP president Datuk Rozali Mohamud agreed with Jagdeep, saying that the hike was in accordance with the provisions of the law.
He said those owners who are against the increase have the chance to appeal till next month.
MBPP secretary Datuk Addnan Mohd Razali also concurred with Rozali, stating the increase was necessary due to the deficit over the years.
Story by Edmund Lee
Pix by Chan Kok Kuan