Rumaizi at the lucky draw event at MBI headquarters for ratepayers who made full payment for this year’s assessment.
THE assessment rate for residential properties in Ipoh, Perak, has been set at 7%, a slight reduction from the figures announced previously, says mayor Datuk Rumaizi Baharin.
The new rate, he said, was gazetted by the Perak government on Dec 11 last year, and the reductions have also been made for other property categories, such as commercial and factories.
“The rate for housing properties has been reduced from 9% to 7%, while the rate for traditional village houses is now set at 3%,” he said when met at the Ipoh City Council (MBI) headquarters after a lucky draw event for ratepayers who made full payment for this year’s assessment.
“Some rates will remain unchanged, including those for telecommunication towers and uncategorised properties,” he added.
The reduction of between 0.25% and 2% in property assessment rates was made after ratepayers complained of having to pay higher taxes when the new rate list was announced in August last year.
MBI had conducted a property valuation exercise in the middle of last year with notices on the new rates sent to property owners.
These included 4% for homes and vacant land in traditional villages, 6% for properties in new villages and structured village planning (RPT), strata-titled properties (9%), commercial (9%), and industries (9.5%).
According to the Dec 11 gazetted list, the proposed rates for strata-titled properties are now set at 7%, multi-level non-strata titled properties (9%), commercial (7.75%), industries (8.75%), new villages and RPT (4.5%), and agriculture (5%).
When asked whether there would be changes to the capping mechanism to soften the financial impact on residents, Rumaizi said the matter was under discussion.
Currently the subsidy for residential properties is capped at 15%, commercial properties at 18%, factories at 20%, and special properties at 25%.
Perak MCA publicity bureau chief Chung Kok Heung expressed concern that the final amount of taxes to be paid by property owners could remain unchanged despite the lower assessment rates.
“We still do not know whether the amount will be reduced even if the rates have been further lowered.
“There are still many different factors in play, including the capping mechanism and property values,” said Chung, who is also Ipoh Barat MCA Youth chief.
Ipoh City Watch president Dr Richard Ng expressed scepticism over the new rates because non-governmental organisations were not invited when it was announced at a town hall session with industry and commerce groups.
“I believe the city council has made a decision based on their budget and revenue needs for this year,” he said.