Penang CM defends councils' move to hike assessment rates

Penang Chief Minister Chow Kon Yeow has defended the move by the local councils to increase property assessment rates after 15 years, a decision which received much flak from the public.

At a press conference in Komtar today, Chow explained that the state had already done its best to reduce the impact of the hike in assessment rates.

He pointed out that the various categories of properties, with the assessment rates and units involved, showed the hike had been reasonable.

For landed residences (low and medium cost) in the Penang Island City Council (MBPP), 1,795 units will be paying an annual increase between RM0 and RM33.

Of this figure, 404 units will pay between RM0 and RM5, 849 units (RM5 and RM10), 430 units (RM10 and RM15), 101 units (RM15 and RM20), while only 11 units would have to pay an increase between RM20 and RM33.

For landed residences, 97 percent (67,934 out of 69,774 units) will be taxed an increase between RM0 to RM500.

A total of 17,388 units will be paying an increase between RM0 and RM50, 5,325 units (RM50 and RM100), 23,689 units (RM100 and RM200), 14,782 units (RM200 and RM300), 4,618 units (RM300 and RM400) and 2,132 units (RM400 and RM500).

For stratified residences (low and medium cost), 90,949 units will be paying an annual assessment rate between RM0 and RM85.

In this category, 71,169 out of 90,949 units only have to pay an increase between RM0 and RM1.

For the category of apartments and condominiums, 94,602 units would have to pay increased rates between RM0 to RM200.

Of the figure, 19,680 units are paying between RM0 and RM20, 23,740 units (RM20 and RM50), 34,716 units (RM50 and RM100) and 16,466 units (RM100 and RM200).

Chow also presented similar categories and figures (see chart below) for Seberang Perai Municipal Council (MPSP).

Chow said the state government has already made discounts on the new assessment rates to reduce its impact on residential homes.

He added that if the state had based its assessment rates on the new valuation of properties, the rates would most definitely be much higher.

"The state government has directed the local councils to lower the valuation rate. This is already a form of discount. If we maintain the old rate, the impact would be greater as the annual valuation rate is a lot higher," Chow said.

"We have done this to achieve a balance in the rates."

When told that most people lamented the timing of the hike in assessment rates due to the poor economic situation, Chow said: "We have considered the appropriate time.

"We will now wait for the objection period (up to Oct 14) to be over, where we expect 10 to 20 percent of the residents to lodge an appeal, then only can we make a decision whether to reduce the rates for some categories."

Yesterday, state executive councillor on local government Jagdeep Singh Deo had said the state was mulling reducing the assessment rates in some categories, not all. 

On Sept 13, he announced the hike in assessment rates, saying that the rates were not reviewed for 15 years, since 2005. 

The hike in assessment rates are bound to affect some 322,549 properties on the island and another 327,401 in Seberang Perai, Jagdeep noted.

Residents have until Oct 14 to make their appeals. Public information counters in several locations have been opened to deal with their grievances over the matter. - Mkini