KUALA LUMPUR, Dec 19 — City property owners here will be paying slightly lower assessment rates from January 1 after the Kuala Lumpur City Hall (DBKL) decided on a reduction of between 1 and 4 percentage points following widespread disgruntlement.

Federal Territories Minister Datuk Seri Tengku Adnan Mansor, who announced the new deal, added that disabled and pensioned property owners will be given rebates, in addition to those who reside on their properties.

“I agree for DBKL to implement a revaluation of properties in Kuala Lumpur, but I have asked for the revaluation to not cause a very high increase towards the total assessment rate which must be paid by property owners until it burdens them,” Tengku Adnan told reporters here.

For properties which fall within the 36 square miles radius from Kuala Lumpur, they will be subjected to 10 per cent of tax instead of 12 per cent for commercial properties; and 7 per cent instead of 10 per cent for service apartments.

For properties beyond the 36-square mile radius, the tax will be 8 per cent instead of 10 for commercial properties; and 5 per cent instead of 8 per cent for service apartments.

The annual tax for residences will be charged 4 per cent instead of 6 per cent, regardless of their location.

Tengku Adnan also announced that owners of low and medium cost housings will be charged at the most minimal rate, while the rest will not be paying more than 10 per cent.

Despite admitting that DBKL has received 153,187 complaint letter from Kuala Lumpur folks so far, Tengku Adnan however claimed that the revision was merely a show of care from DBKL.

“With the reduction DBKL stands to collect RM200 million, only half of what we actually need but this is for the public’s good,” he said.

In a show of faith, Tengku Adnan also assured that DBKL will take homeowners’ word that they are actually residing in their own houses rather than renting it out, which will grant them special rebates.

“We will take it in good faith. As far as DBKL is concerned, if you cheat us, (it means) you are cheating God,” he added.

Tengku Adnan also said that the special committee formed to hear homeowners’ complaints will still go on as planned between January and March next year.

Pending the hearing, the homeowners are allowed to pay their property taxes based on 2013’s rates, and can continue with the new rates in the next payment in the second half of the year.

About 300 Kuala Lumpur property owners and residents demonstrated outside the DBKL headquarters on Monday against a controversial increase in city property taxes.

The proposed increase in assessment led to public outcry over the past two months, after homeowners received notices from the local authority informing them of hikes allegedly between 100 and 250 per cent to their existing annual rates.

Tengku Adnan has previously explained that the DBKL is not increasing the assessment rates of properties in the city, but is instead revising the rental valuation of properties upwards to reflect their current value.