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Friday, December 20, 2013

MPs dismiss 'cosmetic move' on assessment rates


Parliamentarians in Kuala Lumpur have taken the federal territories minister to task for making much hurrah about a cosmetic change to property assessment rates, which fell far short of answering protests from angry residents.

The "flip-flop policies" of Tengku Adnan Tengku Mansor and the Kuala Lumpur City Hall (DBKL), they said, proved how insensitive they were to the sufferings of the people. 

TeNONEngku Adnan announced yesterday that DBKL would lower the assessment rates across the board for all properties in KL by one to four percent. 

The bulk of those affected - the owners of commercial and residential properties - will have to pay 10 percent(12 percent before) and four percent (six percent as proposed earlier).

However, MPs representing constituencies in the federal territory of Kuala Lumpur said the main issue in the first hike in assessment rates in 21 years had been avoided: the rental assessment values, which were pushed up by 300 percent more for properties in the notice sent out last month, remained sticky. 

Tengku Adnan said DBKL expected to rake in RM200 million more a year from the new assessment rates. 

MPs from KL, most of them from the Pakatan Rakyat coalition, said they would hold DBKL accountable to answer the 80,000 letters of protest filed against the assessment rate increases.

Tian Chua, MP for Batu:

"There is no cut. It's still a hike. A simple calculation shows that there is no real reduction.- even with the rate cut, people will still pay 70 to 140 percent more .

"Under the Local Government Act, DBKL must hold a hearing for the 80,000 people who have complained by letter. They disagree with the assessment rate.

"Also, they could have adjusted the assessment rate before the objection letters were sent in. Why make the people go through the whole process... why do they do this sort of thing?"

Ahmad Fauzi Zahari, Setiawangsa MP:

“For me, the important thing is not the rate cut but the final bill that the citizens need to pay DBKL.

“After 21 years, the assessment rise is double what it was before... therefore even after the tax rate reduction, they still have to pay over 150 percent. So, we are appealing to the federal government... don’t hike so much. They cannot only look at the applied rate but also the final assessment bill that citizens have to pay.

“At the same time, I question why DBKL suddenly needs such a drastic hike in tax collection?”

Teresa Kok, Seputeh MP:

“Tengku Adnan’s favourite phrase is that BN is a government that cares for the people. Such a phrase really rings hollow and he should stop repeating it.

“For example, a residential property with old annual value of RM 10,000 will pay RM600 under the old percentage rate of 6 percent.
 
“If the revised annual value is RM30,000, the owner will have to pay RM1,200 even though the taxation rate has been reduced to 4 percent. This is still a substantial increase. So Tengku Adnan has not come up with a formula that will not burden the people. 

“How does he know the revenue will be RM200 million even before hearing the objections made by 150,000 rate payers?  Has he already decided that there will not be any revision of annual values?

“I wish to remind Tengku Adnan that any increase must be gradual and imposed with guaranteed improvement in services.”

Lim Lip Eng, Segambut MP:

“In announcing one unsettled decision after another, what he did was to further confuse the issue. I can definitely expect more calls from residents who will not understand what the decrease in assessment rates would mean for them. 

“I hope that the minister will not make further announcements until and unless the matter is clearly resolved. 

“They should hold off until the public hearings on the objections end in March next year.”

Nurul Izzah Anwar, Lembah Pantai MP:

“The government has yet to justify the tax hike and be made accountable. 

“DBKL should be required to fully disclose their accounts for public scrutiny.”

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