Quit rent hike in Sarawak will help increase local councils revenue

SIBU: Local authorities in Sarawak are expected to record a higher revenue this year following the revision in quit rent from Jan 1.

"Some of the oil palm plantations used to pay only RM1mil in quit rent per year however, under the new rate, the amount is expected to increase up to RM10mil annually," said Deputy Premier Datuk Seri Dr Sim Kui Hian (pic) after witnessing the installation of Sibu Rural District Council (SRDC) councillors for the term 2023-2025 on Monday (April 3).

Dr Sim added that the Land and Survey Department would be collecting the quit rent on behalf of the councils.

"The (Land and Survey) department will collect the levy on behalf of local councils," he said, adding that the Land and Survey Department would take action on behalf of the councils if landowners refused to declare including taking back the land.

The new quit rent rate was approved on June 16 last year under Section 30(5) of the Sarawak Land Code and the new rate for commercial plantation land exceeding 40.47 ha was RM30 per ha.

The rate was RM25 per ha for quit rent, while RM5 per ha was collected by the local government to replace the plantation levy.