Businesses unhappy with increase just as they are recovering

JOHOR BARU: Business guilds in Johor have urged the state government to rethink its move to revalue commercial and residential properties.

Kluang Chinese Chamber of Commerce and Industry president Datuk Teo Ee Piau said a business owner in the district was shocked to find that the final amount of assessment he has to pay for his factory has gone up by 626%.

“The business operator used to pay RM1,814 annually, and after the review, he has to pay RM13,175 starting next year.

“Meanwhile, the surrounding lots at the factory, which are empty plots, also saw an increase in the assessment, from RM1,728 to RM4,185.

“Commercial lots like shophouses are not spared either, with businesses complaining of a hike of 30% to more than 300%,” he said.

Teo added that the economy was just about to recover since the Covid-19 pandemic, and the “sudden move” would jeopardise all ongoing efforts to improve livelihoods.

“While we understand that the review of the assessment was unavoidable, we are also concerned about the repercussions of such a move on the people and business operators’ livelihoods,” he added.

Johor Indian Chamber of Commerce and Industry secretary-general Datuk K. Krishnan proposed that local councils consider imposing lower assessment rates to reduce the burden on affected business owners.

“We understand that local councils have to readjust the assessment no matter what.

“It makes sense that the properties involved have a higher value now as it has been years since the last valuation review was done.

“Perhaps one way the state government could help the people affected is to reduce the rate further.

“They could maybe increase it later on, but for now, they should really keep the rate as low as possible,” he said.

Krishnan added that most businesses now are in the midst of rebuilding their operations after recovering from the impact of the pandemic.

“There are business owners who are taking out what little savings they have left just to rebuild their businesses. Some are also taking loans.

“They felt that it is the right time for them to work towards regaining what they have lost in the past few years.

“As such, the timing of the assessment adjustment is not that suitable.

“The focus now for these people is on rebuilding the economy,” Krishnan said.