Penang govt raises next year’s quit rent rebate to 50%

Chief minister Chow Kon Yeow says the new rates will apply for at least 10 years, with appeals allowed in selected cases.

Penang chief minister Chow Kon Yeow said the state executive council had agreed to allow appeals on quit rent reductions, arrears and late payment penalties in selected cases through land office appeal mechanisms. (Bernama pic)

GEORGE TOWN:

 The Penang government has agreed to increase the quit rent rebate rate for 2026 to 50% from 32.5% previously to ease the financial burden of landowners while ensuring a gradual and controlled transition to the new quit rent rates.

Chief minister Chow Kon Yeow said, however, that the quit rent rebate was subject to the minimum quit rent rate prescribed under the law, and that the revised rates would stay in force for at least 10 years, in line with the National Land Code (Act 828).

“In this regard, if the quit rent amount after the rebate is lower than the existing amount paid in the previous year, the existing quit rent amount will apply.

“This approach is intended to ensure a balance between the interests of landowners and the state’s revenue requirements,” he told a press conference here today.

Chow also said the state executive council had agreed to allow appeals on quit rent reductions, arrears and late payment penalties in certain cases through the appeal mechanism at land offices.

He also said appeals might be considered for First Grade landowners affected by changes in rates due to current land use, as well as those involved in the process of reclassifying land from rural to urban.

All appeals would be subject to stipulated conditions, with the mechanism intended to assist landowners who are significantly affected by the new rates, he added.

Chow said quit rent bills would be posted to all landowners in mid-January, but landowners could begin checking and paying their quit rent bills online starting Jan 2.

The state government previously agreed to grant a 100% waiver on late payment penalties for outstanding quit rent and parcel rent from Jan 1 to Dec 31, 2026, involving penalty arrears totalling RM25 million.

On Sept 19, it implemented a review of quit rent rates and the reclassification of rural land to urban land, in line with the provisions of Section 101 of the National Land Code, effective Jan 1 next year.

The review affects nearly 370,000 land titles across Penang, covering residential, commercial, industrial, agricultural and other land categories. - FMT