Sarawak plantations to feel the heat with new tax collection

 

An estate levy of RM5 per hectare will be collected by the Sarawak land and survey department on behalf of local councils. (Bernama pic)

SIBU: Local councils in Sarawak are expected to gain improved revenue following the revision of the land tax rate which began early this year.

Sarawak deputy premier Dr Sim Kui Hian said the local councils which collect levy from oil palm estates would have the revenue collected on their behalf by the land and survey department.

Sim explained that the task of collecting the levy was given to the department as previously oil palm estates had the tendency to under-declare and the local councils could not do anything about it.

“But now if they under-declare, the department can take action against them which includes taking back the land that the plantation did not declare. I don’t think they want that to happen,” he said at the installation of councillors of the Sibu rural district council.

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Sim said plantations used to pay RM1 million per year but now it is about RM10 million per year.

The new tax rate was approved on June 16 last year and came into effect early this year.

The new rate for agricultural land of more than 40.47 hectares (commercial agriculture) is RM30 per hectare where RM25 per hectare is collected as land tax while RM5 is collected as estate levy by the department on behalf of the local councils. - FMT