ABOUT 130 landowners have sought Penang MCA’s assistance to appeal against sharp increases in land tax in Penang that began early this year.
Bukit Mertajam MCA Youth chief Tan Yang Pang, who heads the party’s Land Tax Appeal Assistance programme, said many of the cases involved steep and sudden hikes that were difficult for ordinary landowners to bear.
“The committee has received about 130 applications so far.
“They are still waiting for replies from the Land Office as there are too many appeal cases and the authorities need time to process them.”
He said that even after the state announced revised rates for certain categories, affected landowners were still required to apply for reductions manually.
“Applications are still needed to reduce the rate to 70sen per square metre (sqm) as it is not done automatically,” he said.
Tan cited the case of a 31-year-old landowner in Permatang Pauh whose annual land tax rose from RM30 to RM32,000 for a 9,956sqm plot, noting that it was an increase of over 106,500%.
“Even with a 50% rebate, the amount is still RM16,000, which is far beyond what many can afford,” he said.
Another case involved a 72-year-old retiree in Taman Bukit Noning, whose land tax increased from RM5 to RM3,000 for a 1,068sqm plot used for plantation purposes, marking a 59,900% hike.
Tan described the increases as unreasonable, particularly for inherited land or plots used for small-scale agriculture.
“They are suddenly required to pay an absurd amount after such a drastic hike.
“Many of these are plantation lands, even if some are categorised as commercial.
“Some who inherited the land are now hit with bills they never expected,” he said, adding that MCA had been assisting affected landowners since January.
Tan also criticised the appeal process, calling it unnecessarily complicated.
“To appeal, landowners must first apply for a re-inspection.
“Once that is approved, they have to submit another application to appeal for a reduction.
“This is unnecessary inconvenience, like selling a product at a sudden high price, billing people first and only those who are aware will appeal,” he said.
Under the Penang State Land Rules gazetted on Sept 11, 2025, industrial land is taxed at RM3.25 per square metre statewide, while commercial land is taxed at RM3.25 per square metre in urban areas and RM2.80 per sq m in rural areas.
Penang has about 230,000 first-grade land titles, including 126,516 residential lots, 35,624 agricultural plots, 28,015 commercial lots, 13,737 village housing lots and 3,499 industrial plots.
First-grade land in Penang is a legacy of the Straits Settlements colonial period.
The state government previously said land tax rates had not been reviewed for about 30 years, with the last revision carried out in 1994.
The revised rates sparked concern among landowners, particularly those with older titles and temporary use sites, after some saw sharp increases in rates.
In April, Penang Chief Minister Chow Kon Yeow announced that land tax for certain first-grade land with only temporary structures, such as depots and lorry yards, would be reduced.
He said such land had been reclassified as “building” land, whereby landowners would be required to pay 70sen per sqm for urban land and 50sen per sqm for rural land.
Previously, some of these lots were assessed at higher commercial or industrial rates ranging from RM2.80 to RM3.25 per sqm.
Chow said the reclassification meant that landowners under this category would not receive the previously announced 50% rebate.
He said the appeal period for the revised land tax has also been extended until May 31.
As of April 30, 10,344 responses and appeals had been received through official forms submitted to district offices throughout the state.
Of that figure, 4,015 cases have been resolved while 6,329 are still being processed by the District and Land Offices as well as the Penang Land and Mines Office.
