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Showing posts with label tax on property owners. Show all posts
Showing posts with label tax on property owners. Show all posts

Sunday, 22 December 2019

Unfair to impose blanket tax on property owners

THE Penang government should first study the assessment rates for different categories of properties before imposing a blanket tax on everyone which is unfair, says Citizen Awareness Chant Group (Chant) legal adviser Citizen Awareness Chant Group (Chant) (pic).He said the state should look into the categories of assessment rates like those imposed in developed countries before imposing the rates on ratepayers.

“The lowest charged fees should be for the disabled (OKU) owners and those in the B40 group.

“For owner-occupied properties, they should be charged a lower rate and the highest rates should be imposed for commercial and industrial offices, ” he said at a press conference at Jalan Pykett on Wednesday.

Yan Lee said although commercial properties like restaurants and hawker complexes would be paying higher assessment, it is fair as commercial properties have more rubbish to be cleared.

“These premises frequently take up the cost for public health inspection and council cleaning services.

“So, there should be a categorisation of how the rates are charged, like different rates for properties that are also rented out, vacant or used for commercial purposes, ” he added.

Yan Lee said in developed countries, there are categories which include owner occupied, rented out properties, unoccupied properties, rented out long-term or Airbnb properties, residential properties used for offices and industrial properties.

“But, as the state is moving forward and following the footsteps of a developed country, there is also the question of how these categories can be monitored.

“In this case, the state should consider having an enforcement team like in Australia to check on the properties at random.

“With the usage of a digital camera similar to those used for parking fine routines, photos can be taken when checks are done on the properties.

“We hope the state would do a study to look into this and try to implement the system, along with imposing different rates for the different properties, ” he said.

Earlier, it was announced that an assessment rate review would see almost all residential property owners in Penang paying more in assessment taxes.

On the island, a total of 255,280 out of the 263,544 property owners would have to pay more in the revised assessment tax, while the increase would involve 196,347 out of 215,586 houses on the mainland.

Following the announcement, the Penang Island City Council (MBPP) and Seberang Prai City Council (MBSP) started hearing sessions for objections against the review in October.

It was reported that MBPP had received a total of 54,459 objections from over 322,000 ratepayers, while MBSP received a total 40,666 objections from 327,000 ratepayers.

Meanwhile, Yan Lee said that in the case of the parcel rent, (previously known as the quit rent), commissions should be applied based on how the land is used.

“The increase in the quit rent was announced earlier from RM10 to RM30. Quantum-wise, the amount is not a lot, but percentage wise, it is a lot, ” he said.

Earlier, the quit rent came into effect where rates are calculated based on the total plot of land which the building was built on and rates for parcel rent are based on the size of each unit.

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