THE local councils – Penang Island City Council (MBPP) and Seberang Perai City Council (MBSP) – would focus on their core businesses and scale down on other less vital projects following the loss of revenue after giving assessment tax rebate this year.
State Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said even though the state government has to suffer losses in terms of collection, what matters most is to revive the economy and ease the burden of Penangites.
“This is a state government that cares for its people,” Jagdeep said in his reply to an oral question raised by Jason Ong (PH-Kebun Bunga) about whether the state government would increase the assessment tax next year at the State Legislative Assembly sitting in Dewan Sri Pinang today.
He said it was coincidental that when the state was planning to raise the assessment tax, the coronavirus struck.
“This was one of the main factors raised by those who appealed against the tax increment. So, after taking into consideration the welfare of our people, the state government decided to give a rebate this year.
“We have not decided yet whether we would be imposing a rebate for the assessment tax for next year. We have to look at the situation and take into account the impact of the pandemic,” he added.
Jagdeep (PH-Datok Keramat) said MBPP was expected to collect RM54.24 million this year but after the assessment tax rebate given, the amount would drop to RM19.52 million.
Likewise for MBSP, the initial amount expected to be collected was RM39.74 million but with the reduction in rebate, it would now be RM27.81 million.
“With the loss in revenue, MBPP and MBSP will now focus on their core businesses and scale down or delay other projects.
“The state will help the local governments if there is a need in terms of funding.
“I would like reaffirm here that the state government will not compromise on public health and safety,’’ added Jagdeep.
Story by Tanushalini Moroter
Pix by Ahmad Adil Muhamad