GEORGE TOWN: The multi-thousand-ringgit spike in land taxes in Penang is mostly for lots large enough for building retailing centres or rows of terraced houses, said Chief Minister Chow Kon Yeow.
Checks with several residents showed that quit rent for typical terraced houses remains modest.
He said a homeowner in Tanjung Bungah pays about RM60 annually while another in Island Glades pays about RM80 a year after rebate.
In a statement, Chow cited more examples, saying a First Grade land title in the north-east district measuring 3,814 sqm – roughly equivalent to 15 tennis courts or 29 terraced houses – was previously taxed RM8 annually.
He said the revised tax for the land, currently used for commercial purposes, is RM12,397 per year.
Another First Grade parcel in south Seberang Perai, spanning 16,035sqm (the size of two World Cup football fields), was taxed RM48 annually when it was a coconut plantation.
With its present commercial use, the payable land tax is RM44,900.
Chow said for over 30 years, the affected landowners had benefited from exceptionally low taxes compared with others who paid rates aligned with their land’s actual use.
He said land administrators are reviewing more than 350 appeals from landowners seeking reductions, with appeals being assessed at the district level after the state introduced enhanced grounds for review and a 50% rebate.
On claims that the state’s land tax structure was inconsistent with the National Land Code, Chow described them as inaccurate, stating that the law allows the state authority to differentiate rates according to class and description of land.
Chow said the approach is particularly relevant to some 230,000 First Grade titles issued under the pre-independence English Deed System, which do not state land categories or conditions.
“Over the decades, some of these lands have shifted from agriculture to commercial use.
“Assessing based on current use ensures fairness to other landowners who are already paying according to actual use,” he added.
Meanwhile, Penang MCA secretary Yeoh Chin Kah questioned the state’s proposed discretionary discounts, including concessions for those facing financial hardship, persons with disabilities, or incomplete development projects.
He said once land tax rates are gazetted, they should be enforced according to law, adding that introducing discounts later lacks legal clarity and risks selective favouritism.
“For example, if one joint landowner has a disability, would the entire property qualify? Has the state government explained this?” Yeoh said, and urged the state to set reasonable, standardised tax rates that consider both affordability and social equity.
