Datuk M. Ali, Wong Chan Choy and Yee Poh Ping .
NEWS that they might have to fork out more in assessment taxes next year has triggered alarm among Kuala Lumpur residents as concerns mount over the rising cost of living in the capital city.
Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa, in a StarMetro report on Friday (Dec 13), said the local authorities were mulling increasing assessment taxes to boost revenue amid higher costs.
She did not offer a timeline but stated that new rates would likely be implemented in stages, starting with industrial tax rates.
Save Kuala Lumpur chairman Datuk M. Ali said the possible increase was unjustified as the authorities had yet to address various issues in the city.
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He pointed to the frequent flooding and drainage maintenance, which he said were unsatisfactory.
“The quality of life in Kuala Lumpur has been steadily declining,” he told StarMetro.
“There have also been no engagements between the ministry and Kuala Lumpur City Hall (DBKL) with residents on this issue,” he added.
Kepong community activist Yee Poh Ping said the increment should be done in phases to cushion the financial shocks for ratepayers.
“Maybe DBKL could consider a 10% increase in the first five years, before reviewing the rates again after that,” he said, adding that the City Hall must also optimise its spending and workforce to reduce wastage of public funds.
Taman Desa Residents Association chairman Wong Chan Choy, meanwhile, expressed concerns that the assessment increase could stunt the economic recovery observed in the post-Covid-19 era.
“Many businesses are just regaining their footing while many people are still facing financial difficulties.
“This announcement (possible increase in assessment) might cause the public to worry,” he said.
Kuala Lumpur City Hall (DBKL) last reviewed its assessment rates in late 2013 — the first in over two decades.
In June 2014, then Federal Territories minister Datuk Seri Tengku Adnan Mansor announced that the hike would be capped at 10% for residential properties and 25% for commercial premises.
Selangor government recently approved a 25% increase in assessment, effective next year, citing the need to improve local government services.
The state government reasoned that the property valuation rates at its 12 councils were outdated, with some using decades-old figures dating back 30 years.
Under the Local Government Act 1976, local authorities are permitted to review and revise assessment rates every five years.
