30% discount on new assessment rate

PROPERTY owners under five local district councils will receive a 30% discount on the new assessment rate next year, says Datuk Onn Hafiz Ghazi (pic).

The Johor Mentri Besar said there are 807,441 property owners under the five local councils and 326,720 of them (40.4%) are not affected by the tax increase.

“I have given my commitment to review and study this matter with the Johor exco and local councils involved.

As a government that hears and understands the issues that people are going through, the government has decided to give a 30% rebate or discount for all property owners that are affected by the new assessment rate.

“I hope that this discount will ease the burden of taxpayers under these five local councils,” he said during his winding-up speech at the state assembly sitting held at Bangunan Sultan Ismail, Kota Iskandar in Iskandar Puteri yesterday.

The five local councils will now have to revise and announce how the discount affects the new assessment rate which takes effect on Jan 1.

The local councils are Pasir Gudang City Council (MBPG), Iskandar Puteri City Council (MBIP), Johor Baru City Council (MBJB), Kluang Municipal Council (MPK) and Pengerang Municipal Council (MPP).

“The new assessment rate is expected to increase revenue for the local councils and this should translate into better services and amenities for the people,” said Onn Hafiz.

Meanwhile, state housing and local government committee chairman Datuk Mohd Jafni Md Shukor said of the 807,441 property owners, only 19,894 have objected to the new assessment rate.

“The number of those objecting to the new assessment tax is 19,894 (about 2.4%). The five local councils are expected to collect RM165mil in revenue next year, but with the 30% discount, they will only gain about RM99mil,” he said. The state government will study whether the discount should be extended to 2025.

“The review of the assessment tax was conducted together with councillors from the five local councils, which is why 40.4% of the property holders are not affected. Those who are not affected are from the B40 families and this discount is offered not only to home owners but all property owners including the industry, businesses and agriculturists,” he said.

As for the 19,894 property owners who oppose the new assessment rate, the state will continue to meet with them to find a win-win situation.

The Star recently reported that property owners are upset over the state government’s proposal to revise and raise the assessment rate in the five local councils.