GEORGE TOWN: State land administrators are currently reviewing more than 350 appeals from landowners seeking reductions following this year's land tax revision, said Chief Minister Chow Kon Yeow.
He said the appeals are being assessed at the district level after the state introduced enhanced grounds for review and a 50% rebate to cushion the impact of higher assessments arising from the latest revision exercise.
Chow said the state government had taken into account concerns raised by stakeholders, including the Penang Ratepayers Association (Ratepayers Penang), which had questioned the transparency of the appeal and rebate mechanisms.
“At this point, more than 350 appeal applications have been submitted and are being examined by the respective land administrators.
"We have improved the basis for appeal to ensure landowners who are genuinely affected can seek further reductions," he said on Friday (Feb 20).
He stressed that the rebate mechanism was introduced as an immediate mitigating measure, given that land tax rates can only be formally reviewed once every 10 years under Section 101 of the National Land Code (Kanun Tanah Negara).
Chow also addressed concerns that the state's land tax structure was inconsistent with the National Land Code, describing such claims as inaccurate.
He said Section 101(3)(b) of the Code empowers the state authority to impose different rates based on classes or descriptions of land, allowing tax assessments to reflect actual land use rather than being confined strictly to broad statutory categories.
“The law clearly allows the state authority to differentiate rates according to class and description of land. This means assessments can take into account the current use on the ground to ensure fairness among landowners,” he said.
Chow explained that this approach was particularly relevant for First Grade titles originating from the pre-independence English Deed System, which do not clearly specify land categories or express conditions.
He said there are about 230,000 such titles statewide, and the absence of clear category information had previously resulted in very low annual assessments despite changes in actual usage over time.
“As development has taken place over the decades, some of these lands are no longer used for agriculture but for commercial purposes. Assessing based on current use ensures equity with other landowners who have been paying according to actual usage,” he added.
Chow reiterated that the revised structure, gazetted in September last year, was designed to provide a clearer and more transparent framework, while the rebate and appeal mechanisms serve as safeguards to address genuine hardship cases.
“The objective is to ensure the system is fair, legally sound and reflective of present-day realities, while providing room for consideration where warranted,” he said.
Earlier, it was reported that the non-governmental organisation Ratepayers Penang had urged the state government to standardise Penang's land tax rates in line with the National Land Code to ensure transparency and fairness, following concerns over the latest increase in land tax in the state.
The NGO said the move was important to ensure that land tax administration is carried out in an orderly manner and in accordance with existing legal provisions.
It added that land tax must be administered strictly within the legal framework and not based on discretion.
