Lee: The justification that quit rent has not been increased for many years is not acceptable because parcel rent has already been imposed since 2019
Group seeks clarification on valuation method that will be used for landed properties
ARE quit rent rates fair across Penang? A random survey of houseowners would suggest not.
For example, a single-storey corner lot terrace house in Bayan Baru is charged RM84 while for a 3,000sq ft house in Batu Ferringhi, the houseowner pays RM61 a year.
On the mainland, a 1,300sq ft double- storey terrace house in Bukit Mertajam valued at over RM400,000 pays just RM40 a year.
In Perai, a similar double-storey terrace house pays RM46 yearly.
Penang Ratepayers Association president Lee Kim Noor pointed out that those who own high-rise units in Penang pay many times more than that in the form of parcel rent or “cukai petak” after the rates were revised in 2019 while quit rent remained the same since 1994.
The state government has confirmed that from Jan 1, quit rent in Penang will be updated to reflect present-day land values.
Lee raised concerns over the matter and called on the state government to clarify what valuation method would be used.
“The justification that quit rent has not been increased for many years is not acceptable because parcel rent has already been imposed since 2019.
“With numerous high-rise units in Penang, the total collection would have increased tremendously.
“There was no public consultation and we had requested many times to be included in the committee but to no avail.”
According to Lee, quit rent is determined by the formula and rates gazetted under state land rules, with different rates according to the areas.
The association is urging for public engagement sessions before implementing the hike.
“We pointed out in 2019 during a dialogue with the chief minister, that rates are not equitable as areas like Bayan Baru are still under the category of ‘desa’ (rural).”
Bayan Baru resident Aldrin Loke admitted that his quit rent was low and said he would be willing to accept a 15% to 20% increase.
“But if you say it has not been revised for over 30 years and suddenly raise it by 50% or more, then it is too much.
“We are already paying more for everything, don’t pile more taxes on us.”
Real estate agent Paul Lim said quit rent in Penang was relatively low and believed that any increase would unlikely affect the value of properties.
In a recent interview with state publisher Buletin Mutiara, Penang Land and Mines Office director Dr Faizal Kamarudin said the value of land in some areas had risen by 1,000% but the quit rent had been the same since the mid-1990s.
He said under the law, land tax rates could be reviewed every 10 years, but Penang had not conducted a reassessment since 1994.
Quit rent, or cukai tanah, is a land tax that landed property owners must pay annually to state governments.
This differs from the twice-yearly assessment tax or “cukai pintu” which are fees to local councils.
