KUALA LUMPUR: The increase in assessment for properties in Kuala Lumpur will be capped at 10% maximum for residential and 25% for commercial.
This was announced by Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor at a town hall meeting with residents and businesses.
The decision to reduce the assessment rate for all types of properties by between one and three percent as per Tengku Adnan’s announcement at the end of last year, stands.
The new property valuation that led to protests by various parties also remains.
“If the funds are managed properly and taxes are paid on time, we may not need to introduce any other changes next year,” Tengku Adnan said.
Over 314,300 or 63% of properties will benefit from the cap.
A total of 16,461 or 3% of properties comprising low- and medium-cost homes will see an increase in their tax but an exemption has been made for them to pay the same tax as last year, making the amount unchanged for 2014.
Another 166,890 or 34% of properties, largely low- and medium-cost homes, will enjoy a lower assessment tax.
All properties will enjoy the same rates anywhere in the capital except for commercial, service apartments and vacant commercial lots.
Tengku Adnan said that the cap is effective for this year only.
“We may consider extending it for next year and even increasing or decreasing the percentage depending on the current situation and the ability of the people to pay,” he added.
KLites were shocked to receive notices on the increase in their property valuation and the corresponding hike that would raise their assessment charges from 100% to 250% and as high as 400%.
More details in The Star Online Community tomorrow.
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