Bowing to popular pressure, the government has decided to cap the hike in assessment tax for Kuala Lumpur properties at 10 percent for residential properties and 25 percent for commercial properties for 2014.
Announcing this today, Federal Territories Minister Tengku Adnan Tengku Mansor (left) said that this was decided in a recent cabinet meeting.
Compared to 2013, the tax amount will be lower for some owners, unchanged for others, while some will experience a hike depending on the type of property and its location, Tengku Adnan said.
"However, the government has decided that the increase be capped at 10 percent for residential properties and 25 for commercial," he said in a town hall meeting in Bangsar, Kuala Lumpur.
However, he could not provide a guarantee that these taxes would not be further increased next year.
The Kuala Lumpur City Hall estimates that with the new rates, 34 percent (166,890 property units) will enjoy a reduction in assessment tax while taxes for the three percent (16,461 property units) will remain unchanged.
The majority 314, 371 units or 63 percent of properties in Kuala Lumpur will see assessment rates go up, by no more than 10 to 25 percent, for residential or commercial properties respectively.
Loud protest
Last December, the government cut assessment rates for by one to four percent starting 2014.
This followed an exercise last year to revalue the city's properties up sharply, something that Kuala Lumpur City Hall (DBKL) did for the first time in 21 years.
These assessments, which are based on estimated rental values of the properties were hiked by as much as 300 percent for some.
It drew protest from many KL-lites and parliamentarians who were worried that they would have to pay an astronomical increase in taxes.
DBKL then spent the last six months receiving feedback and listening to the grouses before arriving at its latest decision, so that "the people will not be burdened."
Under this new tax regime, DBKL will collect 15 percent more taxes from property assessments in 2014, compared to last year.
This means that it will still need to find more money to cover its expanded spending budget.
Previously, DBKL had announced that it would spend RM2.79 billion in 2014, up about 20 percent from 2013.
Announcing this today, Federal Territories Minister Tengku Adnan Tengku Mansor (left) said that this was decided in a recent cabinet meeting.Compared to 2013, the tax amount will be lower for some owners, unchanged for others, while some will experience a hike depending on the type of property and its location, Tengku Adnan said.
"However, the government has decided that the increase be capped at 10 percent for residential properties and 25 for commercial," he said in a town hall meeting in Bangsar, Kuala Lumpur.
However, he could not provide a guarantee that these taxes would not be further increased next year.
The Kuala Lumpur City Hall estimates that with the new rates, 34 percent (166,890 property units) will enjoy a reduction in assessment tax while taxes for the three percent (16,461 property units) will remain unchanged.
The majority 314, 371 units or 63 percent of properties in Kuala Lumpur will see assessment rates go up, by no more than 10 to 25 percent, for residential or commercial properties respectively.
Loud protest
Last December, the government cut assessment rates for by one to four percent starting 2014.
This followed an exercise last year to revalue the city's properties up sharply, something that Kuala Lumpur City Hall (DBKL) did for the first time in 21 years.
These assessments, which are based on estimated rental values of the properties were hiked by as much as 300 percent for some.It drew protest from many KL-lites and parliamentarians who were worried that they would have to pay an astronomical increase in taxes.
DBKL then spent the last six months receiving feedback and listening to the grouses before arriving at its latest decision, so that "the people will not be burdened."
Under this new tax regime, DBKL will collect 15 percent more taxes from property assessments in 2014, compared to last year.
This means that it will still need to find more money to cover its expanded spending budget.
Previously, DBKL had announced that it would spend RM2.79 billion in 2014, up about 20 percent from 2013.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.