Selangor exco defends rate hike, says some places didn't review for decades

 

Selangor Human Resources and Poverty Eradication executive councillor V Pappa Raidu has defended the state’s decision to raise the assessment rate for local authorities by 25 percent, effective Jan 1 next year.

“We have deliberated on this many times. One must understand that under the law, we can review rates every five years.

“However, some places in Selangor have not reviewed its assessment rate for about three decades,” Pappa Raidu (above) told Malaysiakini today.

In making the announcement yesterday, Selangor state executive councillor for Local Government and Tourism Ng Suee Lim said the adjustment follows a review under the Local Government Act 1976 (Act 171), which mandates that all local councils prepare and update new valuation lists every five years.

He said the Sabak Bernam District Council has been using a rate approved 38 years ago, the Kuala Langat Municipal Council 37 years ago, and nine other local councils for over 20 years.

“This tax adjustment will be implemented over five years and is expected to boost councils’ revenue by RM355 million annually. These funds will be utilised to enhance infrastructure and public services across districts,” he was reported as saying.

Panned by ex-rep

The decision, however, was derided by former Sungai Pelek assemblyperson Ronnie Liu.

“It’s a difficult time for Selangorians. A 25 percent hike in cukai pintu (assessment tax) is unbearable, a no-no.

“Perhaps a hike of five percent. I urge the state government to review.

“Do not add to the burden (many are struggling and already find it hard to survive). After all, most of the local councils are doing very well.

“And the state can always help those few which are doing not so well,” Liu said on Facebook.

Defending the decision, Pappa Raidu said with rising costs, local councils need the funds to provide services to the public, such as maintaining street lights and managing waste disposal.

He also pointed out that the low assessment tax rate was affecting the prices of properties.

“And our local councils have provided good service to the public (over the years),” he added.

Asked about feedback from his constituents in regard to the matter, Pappa Raidu acknowledged some were not happy.

“But some understood our decision. Again, I must stress that the state didn’t raise assessment rates for decades.”

Low-cost houses exempt

Echoing Pappa Raidu’s sentiments, Seri Serdang assemblyperson Abbas Salimi Che Azmi said the review in assessment rate was done after considering the current costs of providing services to the public.

Seri Serdang assemblyperson Abbas Salimi Che Azmi

“According to calculation, the hike should be about 50 percent but the state government took into consideration the current situation and decided on 25 percent, which I feel is reasonable,” he told Malaysiakini.

Abbas also pointed out that low-cost homes in Selangor are exempted from paying assessment rates, with the state covering the costs.

“And select kampung tradisi (Malay villages) are also exempt from it depending on certain conditions, such as their household income and land width.”

Meanwhile, Bukit Gasing assemblyperson Rajiv Rishyakaran said, “In the last 20 to 30 years, all costs have gone up, by more than 25 percent. It’s affecting the (local) councils’ ability to function.” - Mkini