GEORGE TOWN, Oct 1 — Penang ratepayers created a ruckus today during a briefing on the review of property assessment rates here with many clamouring for the rates to be reduced.
Crying foul over what some claimed were over 70 per cent of increase from the previous rates, several ratepayers loudly told off the officials from both city councils at the briefing.
Penang Ratepayers Association pro-tem committee chairman Lee Kim Noor said the city councils picked the wrong time to review the rates.
“We can’t find fault in how they calculate the annual value and the rates but this is simply the wrong timing to conduct the review and increase the annual value of properties now,” she said.
She pointed out that in the 15 years that the city council did not review the rates, the number of properties in Penang had increased.
“We can see so many new apartments and condominiums in these 15 years so surely the number of properties to collect assessment rates have increased and the city councils’ revenue have increased,” she said.
She said this shows that city councils are collecting more assessment rates now compared to 15 years ago.
Other ratepayers in the briefing also questioned the rationale behind both city councils’ need for higher revenue while complaining that local government services had not improved over the years.
Earlier, in a press conference, Penang Chinese Chamber of Commerce (PCCC) President Datuk Seri Hong Yeam Wah said the economic situation currently is not conducive for most businesses.
“In terms of business environment, the market is bad now so hopefully, the state government can consider deferring this review,” he said.
He admitted that property value has indeed increased in these 15 years and that rental value had also increased.
“So, yes, the assessment rates have to increase but this should be done gradually, perhaps 20 per cent next year, another 20 per cent the year after that,” he said.
During the briefing, Penang Island City Council (MBPP) Valuation Department director Cheong Chee Hong and Seberang Perai City Council (MBSP) Valuation Department director Mat Nasir Hassan briefed the ratepayers on the calculations for the new annual value of properties and showed them ways to submit their appeals.
The briefing, conducted by PCCC, was meant to clarify the assessment rate reviews by both city councils in the state.
Housing, local government and town and country planning committee chairman Jagdeep Singh Deo, who gave a brief speech before the briefing started, told the ratepayers that the city councils had to review the assessment rates as it had not done so for 15 years.
“We are required by law to increase the assessment rates and we had graciously not increase it for 15 years but now we had to review it in accordance with the law,” he said.
He said ratepayers are encouraged to submit their objections and appeals against the review and that the city councils will consider all objections received.
“Certain categories of properties will get a reduction in their rates after city councils consider the appeals and objections, but not all,” he said.
He added that more than 70 per cent of those in low cost and low medium cost properties will only see between RM5 and RM10 increase per year which translated to about 40 cents to 80 cents per month.
All ratepayers have until October 14 to submit their appeals to their respective city council against the assessment rate review.
