Land office nets RM12mil under parcel rent scheme

The Federal Territories Land and Mines Office has extended the deadline for quit rent and parcel rent payment to Nov 30. — ONG SOON HIN/The Star

THE Federal Territories Land and Mines Office has collected RM11.99mil from parcel rent billing for stratified buildings in Kuala Lumpur as of Sept 24.

The amount is almost 70% of its RM18mil target and director Muhammad Yasir Yahya has described it as “very encouraging.”

The deadline to pay parcel rent and quit rent for properties in Kuala Lumpur, Putrajaya and Labuan was extended from May 31 to Nov 30.

There are about 368,000 strata parcels in Kuala Lumpur, and the amount was collected from some 200,000 parcel owners.

Parcel rent billing was introduced this year for owners of stratified units like flats, apartments, condominiums, commercial units and small office/home office owners in Kuala Lumpur.

Parcel rent is only applicable for those who have separate strata titles.

Owners without individual titles will continue paying quit rent until the strata title is issued.

The new tax system was introduced on Jan 1 this year and replaced the quit rent that property owners used to pay through their respective management corporations (MC) and joint management bodies (JMB) to the land office.

The quit rent was billed along with owners’ maintenance fees.

“It has been very encouraging so far and we have had no complaints, the feedback that we are getting is that people are glad that we introduced this (parcel rent) and that it has managed to solve a lot of issues pertaining to arrears in quit rent payment for strata schemes, ’’ said Yasir.

He noted that most of the payments were made online due to the movement control order imposed because of the Covid-19 pandemic.

“We understand the difficulties faced by some owners prior to this as many who diligently paid their fees to the JMB and MC had issues with their management or other owners who simply refused to pay, ’’ he said.

“At least now owners can take ownership (by paying directly to the land office) as they will know exactly how much they are paying for parcel rent so there is no issue of overcharging (when the JMB was making the payment).

Yasir said the parcel rent system was much fairer as it takes into account the floor area or size of the main parcel of a strata building.

Previously, the total amount of quit rent was divided equally, regardless of the size of owners’ units.

With parcel rent, each unit will be billed based on its size and any accessory parcel that is tied to the main parcel.

The land office had earlier projected to collect about RM30mil this year with the implementation of parcel rent, compared to RM15mil previously.

“However we have reviewed the initial projection rate and scaled it down to a more reasonable target of RM18mil, ’’ said Yasir.

For enquiries, call 03-2610 3430/3438/3428.

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