Guan Eng: Voters wouldn't have backed Chow if manifesto allowed steep land tax hikes

 

Bagan MP Lim Guan Eng today claimed that many Penang voters would not have supported Chief Minister Chow Kon Yeow if they had known the Madani government’s 2023 state election manifesto allowed drastic increases in land tax rates.

In a statement today, Lim said he was surprised by Chow’s recent remarks that an election manifesto does not stop the state government from introducing new initiatives or policies if deemed necessary for the state’s economic stability and well-being.

The DAP veteran said the manifesto launched ahead of the state polls did not indicate that land tax rates could be raised by such large amounts.

He further criticised Chow’s attempt to compare the land tax hike with the proposed Penang International Financial Centre (PIFC), which was likewise not mentioned in the manifesto but pursued due to changing economic demands.

Lim argued that while the PIFC could bring benefits to the state and its people, steep land tax increases would instead harm the financial position and economic livelihoods of landowners.

“So, I ask Chow to fulfil the promises in the 2023 state election manifesto, which guarantees that no party is left behind or marginalised.

Kompleks Tun Abdul Razak (Komtar) houses the Penang chief minister’s office and state government departments

“The principle of a welfare state must always be the guiding principle, then we will certainly build together in the socio-economic development of Penang as a whole,” said the former chief minister.

The relationship between Lim and Chow has grown fraught in recent times, with the pair butting heads publicly.

While Lim has been openly critical of Chow’s leadership, this is his harshest attack on his successor thus far.

Land tax calculation

Commenting further, Lim condemned Chow’s defence of the officials from the Lands and Mines Office who calculated the new rates.

He noted that in several cases, the revised amounts were later reduced by as much as 80 to 90 percent, raising concerns about the accuracy of the assessment system.

“If the system for calculating the increase in land tax rates is correct, fair, orderly, and professional, why is there a need to reduce land tax by 80 percent or 90 percent? Why still defend government officials who make more mistakes than the people who are being wronged?

“A reduction of 80 percent or 90 percent proves that the system for calculating land tax increases is flawed, failed, and problematic.

“Therefore, this system needs to be reviewed and replaced with a correct, orderly, and reasonable system for calculating land tax rates, after prior consultation with the relevant stakeholders,” Lim asserted.

He cited examples of what he described as excessive increases, including a school in Butterworth that allegedly saw its land tax rise more than 4,000-fold.

He also highlighted cases in Batu Kawan - Chow’s parliamentary constituency - including a village in Juru where land tax for a house purportedly rose from RM12 to over RM34,000, and another landowner who claimed to be under severe financial pressure due to the revised rates.

Butterworth in Penang

Lim said his office had received numerous complaints from residents struggling with the higher land tax burden.

“The chief minister should be reminded of the spirit of struggle in conjunction with DAP’s 60th anniversary. The people should be put first!” he said.

In touch with the people

Previously, Lim urged Chow to go on the ground to see for himself the effect of the new land tax on the general population.

In response, Chow yesterday denied that he was out of touch with the concerns of people in Penang.

He was reported by The Star as saying that he has continuously engaged with residents in all districts of the state, particularly via the Jelajah Rama­dan program­me.

Earlier, he said that authorities have already resolved more than 500 out of over 2,000 land tax-related cases.

In September last year, Chow announced that the Penang government gazetted new land tax rates that would affect nearly 370,000 land titles in the state.

He said land tax rates for rural housing rose by 127.27 percent, while urban housing saw a 29.63 percent increase. For industrial land, rates increased by 151.94 percent in urban areas and 200.93 percent in rural areas.

Focusing on appeals now

In a short statement in response to Lim, Chow said that presently, the focus of the Penang state government is to allow landowners to appeal.

“Each case will be reviewed, and results will be made known.

“The state government has already announced seven concessions last week,” he said in a one-paragraph statement to the media.

In September last year, the Penang government announced new tax rates for gazetted land effective from Jan 1, 2026, involving nearly 370,000 land titles across the state.

Bernama reported Chow saying that the National Land Council approved the new rates in 2024. He added that a review would only be conducted every 10 years, with the new rates remaining unchanged without any increase during that period until a new review is carried out. - Mkini