KL rate hike is to help owners revalue property, says Tengku Adnan

An unhappy resident showing the proposal from City Hall to revaluate properties in the city which will result in a hike in the assessment rate. City folk have been urging the authorities to rethink the proposal. - The Malaysian Insider pic by Nazir Sufari, November 23, 2013.Kuala Lumpur property owners should see a proposed higher assessment rate as a vindication of their property value rather than as a burden, a government minister said today despite continuedoutrage over the tax effective 2014.

Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor said today he was merely trying to be fair to property owners in the city and not burden them.

"You must remember that it is not the rate but property value which was not increased in the last 21 years.

"Well, to me, I can increase the value by just  0.1% even, but it is the property owner who is of concern here," he told a press conference in the city centre today.

Tengku Adnan then turned the tables on property owners and asked: "You want me to revaluate your property at 0.1% for 21 years?

"It does not matter to me... up to you," the Putrajaya MP said, adding that the new property revaluation will help property owners should they decide to sell or rent out their properties.

"I don't know why people like to spin this issue out of control. You should tell the rakyat that this is good for them," he told pressmen.

Tengku Adnan, however, said that he will try to solve the issue amicably.

"This is a government that cares. We are not MPs or ministers who walk, walk, talk,talk and lie,lie to the rakyat."

When asked what if the new rates drive the public to move to Selangor, Tengku Adnan said: "Selangor property prices have gone up. Just check and see."

Last Thursday, following a meeting with Kuala Lumpur MPs, Tengku Adnan said he would make a decision on whether the rates would be reduced after City Hall had heard objections from property owners who have until December 17 to submit them.

Currently, the rates for commercial properties is 12%, residential units 6% and vacant property or land 10%.

Kuala Lumpur lawmakers believe that the proposed assessment increase on the Malaysian capital city’s properties will be revised downwards by Putrajaya following strong opposition from city folk.

Bukit Bintang MP Fong Kui Loon was optimistic that Putrajaya will revise the proposed rate which shocked city folk after City Hall had sent them notices stating exorbitant hikes in the annual assessment fee.

“It is not just opposition MPs who are unhappy. The two BN MPs were just as angry,” he told The Malaysian Insider after the meeting, referring to Titiwangsa MP Datuk Johari Abdul Ghani and Setiawangsa MP Datuk Ahmad Fauzi Zahari.

Fong said opposition lawmakers had suggested a downward revision of the proposed rates which will meet the expectations of the rate payers and will also see some increase in revenue for City Hall.

He said a 2% to 3% revision in the rates should provide some relief for everyone.