MB: Increase in quit rent in accordance with National Land Council’s decision


  • Metro News
  • Monday, 20 Jan 2020

For plantation, industry and business owners who feel that their taxes were too high, Pahang government will accept appeals that warrant consideration. - Filepic

KUANTAN: Residents in Pahang are unhappy over the significant increase in quit rent.

Mentri Besar Datuk Seri Wan Rosdy Wan Ismail, however, explained that the amendment in the tax rates for 2020 was in line with the National Land Council’s decision on Dec 14,2015 for every state to review its own rates.

“The last time Pahang reviewed quit rent rates was in 2007. The 2007 rates were applicable only to land approved in that year. For land approved before 2007, the rates used were the ones from 1994, which was 26 years ago, ” said Wan Rosdy.

He said the increase was done comprehensively involving industrial, agricultural, business and residential land in Pahang to ensure the rates were appropriate with the land valuation and current use.

“The state government studied the matter before deciding to raise the quit rent rates, taking into account the previous rates were quite low compared to the current land valuation.

“Basically, this new rate is calculated based on 1% of the land value. However, due to the government’s concern, the real setting made is lower than the 1% factor, ” he said.

Wan Rosdy added that the increase was also intended to correlate with the two different tax rates used previously in 1994 and 2007.

The increase would place greater emphasis on industrial, business and agricultural areas over 4.05ha. However, the rates determined vary by region and location; city and countryside, and business or plantation type, he said.

Wan Rosdy said: “For agricultural land, the new rate only covers more than 4.05ha in accordance with the state government’s wish not to burden smallholders, villagers, the B40 group and Felda settlers.

“For residential land, there is no increase in tax rates. Adjustments have been made for landowners who are still using the 1994 rates. The new rates for the land will be the one from 2007, ” he said.

Land with Nil Condition status were not exempt from this increase and their rates were the highest due to its value.

These land were divided into three categories; no category and no specific conditions, agriculture category and no specific conditions, building category and no specific conditions.

“These three categories are subject to different quit rent rates. Thus, the state government proposed that these landowners convert their respective land use conditions to actual use for a new and lower rate setting.

“To facilitate the process, the state government will implement several amendments including the delegation of the land administrator’s authority and the suspension of tax payments until the process is completed. Applications will be considered in accordance with the prescribed procedure, ” said Wan Rosdy.

For plantation, industry and business owners who felt that their taxes were too high, he said the government was ready to accept appeals that warrant consideration.

To that end, he said an appeals committee would be established to consider each tax reduction appeal that meets the requirements.

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