GEORGE TOWN: Land values in Penang have increased by up to 1,000% in some areas, yet landed property owners have been paying the same quit rent since 1994.
The state government is now reviewing the tax rate to improve revenue collection.
Penang Land and Mines Office director Dr Faizal Kamarudin said the new quit rent rates will be implemented starting Jan 1.
"Under the law, land tax rates can be reviewed every 10 years, but Penang has not conducted a reassessment since the mid-1990s. Meanwhile, land values have surged, with some areas seeing increases of up to 1,000%," he told state publisher Buletin Mutiara recently.
This adjustment will not affect owners of high-rise units as they pay parcel rent, which was last adjusted in 2019.
Quit rent, or "cukai tanah," is a land tax that landed property owners must pay annually to state governments. This differs from the twice-yearly assessment rate or "cukai pintu" payments, which are fees to city or municipal councils for urban services.
Faizal stated that the quit rent adjustment would apply to all land categories, including residential and commercial lots, industrial land, and agricultural areas.
"Penang currently has 373,777 registered land titles, with 194,362 classified as first-grade land, accounting for 51.99% of total land ownership in the state," he said.
To check your quit rent in Penang, visit pgland.penang.gov.my.
