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Wednesday, November 13, 2013

DBKL raising assessment tax by up to 260pct, decry MPs


Seven Pakatan Rakyat MPs for Kuala Lumpur have expressed their displeasure with the Kuala Lumpur City Hall (DBKL) raising assessment rates and quit rents for KL properties by up to 267 percent, saying that the move was done without notifying the MPs.

NONEThey said that DBKL is reviewing assessment rates and quit rents for properties in the capital, but criticised the new mayor, Ahmad Phesal Thalib (right), for allowing such a drastic hike in rates, even though his predecessor Ahmad Fuad Ismail always managed to raise revenue for the city hall without raising the property taxes.

“In fact, it has not been raised for the past 21 years,” Lembah Pantai MP Nurul Izzah Anwar said during a press conference at the Parliament lobby today.

The MPs are warning that the chain effect of the drastic tax hike would affect many people, with landlords expected to increase rentals in order to cushion the effect of the increase.

Highest raise - 267 percent for a low-cost house

The highest assessment raise within the knowledge of the MPs was a 267 percent raise for a low-cost house in Taman Orkid Desa in Cheras, Cheras MP Tan Kok Wai said.

The MPs, comprising Tan, Nurul Izzah, Kepong MP Tan Seng Giaw, Bukit Bintang MP Fong Kui Lun, Seputeh MP Teresa Kok, Batu MP Tian Chua and Segambut MP Lim Lip Eng, also said they were never informed about the hike when they attended DBKL's budget meeting recently.

NONETan (right) said DBKL has not divulged the method it uses to evaluate the new rates, with different valuations being made for similar houses within the same housing area.

He said a condominium in Cheras, which was only completed last year, was subjected to a 20 percent increase in assessment for next year.

Those who do not agree with the new rates have until the middle of December to register their protests, failing which the new rates will come into effect next year.

In Parliament later, Federal Territories Minister Tengku Adnan Tengku Mansor said those who disagree with the rates are free to write to DBKL.

"The increases will come in, but maybe in rates that are different from what we have suggested. We need the source of revenue so that we can use it for others," Tengku Adnan said.

"Please bear in mind that DBKL has never raised these taxes for 21 years," he added.

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