KUALA LUMPUR, Nov 30 — Seven associations based here are mulling legal action against Kuala Lumpur City Hall (DBKL) over the manner in which property assessment here was increased, claiming this violated the Local Government Act 1976.
According to Chinese Chamber of Commerce and Industry of KL and Selangor (KLSCCCI) president Datuk Ter Leong Yap, the revaluation of property was done without proper public consultation or in accordance with Section 137 of the law requiring local authorities to prepare a list of the valuation.
“Before fixing new charges, DBKL should have sent out questionnaires to property owners to determine the rental value of the property,” he said at a joint press conference here yesterday, as reported by The Star daily today.
The other groups involved were the Associated Chinese Chambers of Commerce and Industry of Malaysia, Building Management Association of Malaysia, Malaysia Shopping Malls Association (PPK), National House Buyers Association, International Real Estate Federation and Real Estate and Housing Developers’ Association Malaysia KL branch.
PPK president H.C. Chan warned that Malaysia’s tourism sector worth RM60 billion a year could be affected if the proposed hiked were pushed through.
“Some shopping malls are facing a 100 per cent to 500 per cent increase and this will certainly affect the retail industry where some RM20 billion is generated annually,” he said, adding that this would jeopardise Malaysia’s edge in retail tourism.
The group also questioned DBKL’s reasoning for the sudden increase in property valuation. Ter pointed out that the City Hall recorded a surplus in its operating budget, which he said inferred there was no need to increase assessments merely to increase revenue.
He added that any increment should not be higher than the inflation rate over the last five years.
Separately, KL Mayor Datuk Seri Ahmad Phesal Talib rejected calls for DBKL’s accounts to be made public, insisting that scrutiny by the Auditor-General’s Office was sufficient to ensure accountability.
“We know we are responsible to the people and we spend prudently according to the budget,” he said in response to a consumer group and a local government law expert to have City Hall’s accounts released for public scrutiny to justify the increase.
The proposed increase to property assessment that reportedly ranged from 100 to 300 per cent has had home owners and businesses in the city up in arms, insisting the hike was excessive and unjustified.
The matter met added confusion when notices of the increases were sent out despite authorities initial claim that the hike was only a proposal.
Further confusion arose when Federal Territories Deputy Minister Datuk J. Loga Bala Mohan was reported as saying in Parliament the increase had been deferred to March, before Federal Territories Datuk Seri Tengku Adnan Mansor said the hike in assessment rates in the city will proceed as planned in January, although ratepayers could defer their assessment payments to later, until the panel makes a decision.
There are a total of 507,800 properties listed under DBKL’s jurisdiction, with 56 per cent or slightly over 284,300 categorised as commercial structures while the remaining 44 per cent or around 223,400 are residential properties.
